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State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 1
Submitted to US HUD on March 28, 2007
2006 North Carolina
Consolidated Annual Performance and
Evaluation Report
Participating Agencies:
North Carolina Department of Commerce, Division of Community Assistance
North Carolina Housing Finance Agency
North Carolina Department of Health and Human Services, Office of Economic
Opportunity
North Carolina Department of Health and Human Services, AIDS Care Unit
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 2
Submitted to US HUD on March 28, 2007
TABLE OF CONTENTS
Executive Summary .............................................................................................................................. 3
Summary of Housing Needs ........................................................................................................ 3
Table 1: North Carolina Housing Priorities Chart............................................................... 4
Summary of Resources .......................................................................................................................... 5
Table 2: Housing Resources by Funding Source and Administering Agency.................. 6
Distribution of Resources............................................................................................................. 8
Geographic Distribution of Resources ................................................................................................ 9
Map 1: 2006 Funding Distribution – All Programs ................................................... 9
Map 2: 2006 CDBG Funding Distribution .................................................................. 10
Map 3: 2006 HOME & ADDI Funding Distribution.................................................. 10
Map 4: 2006 ESG Funding Distribution ...................................................................... 11
Map 5: 2006 HOPWA Funding Distribution............................................................... 11
Households and Persons Assisted ......................................................................................................... 12
Racial and Ethnic Status of Households Assisted....................................................................... 12
Table 3: Racial and Ethnic Status of Households – CDBG & HOME Programs.............. .12
Table 4: Racial and Ethnic Status of Households – ESG & HOPWA Programs............... .12
Households Assisted According to Priority Need Category ....................................................... .1.3
Chart 1: HOME & ADDI Funding and Households Served in 2006.................................... .14
Summary Tables......................................................................................................................... .... 16
Table 5: Summary of Funding Distribution of the Four Core Programs............................. .16
Table 6: Federal Funding through the Four Core Programs – Housing Acquisition,
Rehabilitation, Production, and Related Infrastructure ..........................................................
18
Actions Taken To Meet Housing and Service Related Objectives.................................................. 20
Actions Taken To Affirmatively Further Fair Housing .................................................................... 23
Other Actions Indicated in the Action Plan.......................................................................................... 25
Support of Anti- Poverty Strategies ............................................................................................ 25
Capacity Building and Technical Assistance Activities ......................................................... 27
Interagency Coordination and Collaboration ........................................................................... 30
Addressing Weaknesses in the Housing Delivery System ..................................................... 32
Legislative Initiatives ................................................................................................................... 36
Efforts to Reduce Lead- Based Paint Hazards .......................................................................... 37
CDBG Performance Report ................................................................................................................. 39
ESG Performance Report ..................................................................................................................... 44
Table 7: Persons Served by North Carolina ESG Grantees 48
HOME Performance Report ................................................................................................................ 49
Table 8: HOME Production, Summed by Program................................................................ 50
Table 9: NCHFA HOME Production by Priority .................................................................... .51
Table 10: Inspections of HOME- funded Units by Project ................................................... .65
Attachment 1: HOME Annual Performance Report ................................................................ 72
Attachment 2: HOME Match Report ......................................................................................... .74
HOPWA Performance Report ............................................................................................................. 75
Attachment 3: HOPWA Performance Chart 1 - Actual Performance................................ 80
Attachment 4: HOPWA Performance Chart 2 – Comparison to Planned Actions ............. .81
Public Participants................................................................................................................... .............. 82
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 3
Submitted to US HUD on March 28, 2007
EXECUTIVE SUMMARY
The 2006 North Carolina Consolidated Annual Performance and Evaluation Report, CAPER,
summarizes the accomplishments of four North Carolina Agencies, each of whom receives a formula
grant from the United States Department of Housing and Urban Development ( HUD). The four agencies
are:
• North Carolina Department of Commerce, Division of Community Assistance;
• North Carolina Housing Finance Agency;
• North Carolina Department of Health and Human Services, Office of Economic Opportunity;
• North Carolina Department of Health and Human Services, AIDS Care Unit
These four agencies and their HUD- funded programs are working
together to meet three goals for the good of North Carolinians.
These three basic goals are:
• Provision of decent and affordable housing;
• Provision of a suitable living environment; and
• Expansion of economic opportunity.
Since 1999, the state has pursued a consolidated planning process
that addresses the major housing and community development
needs affecting North Carolina communities, determines priorities
for addressing those needs, and lays out a strategy for using the resources available. Pursuant to the
provisions of 24 CFR, Housing and Urban Development, Part 91, Performance Reports, the state has
prepared the 2006 NC CAPER on its progress in implementation of the 2006 Annual Action Plan and the
North Carolina Consolidated Action Plan, 2006- 2010.
The CAPER is based in part on the 2006 Consolidated Annual Action Plan and the North Carolina
Consolidated Action Plan, 2006- 2010. The four partnering entities received grants to provide housing
and housing- related services; community and economic development assistance; and supportive services
to low and moderate- income individuals and families; homeless individuals and families; and individuals
with HIV/ AIDS and their families. This document details the resources received and the programs used
to improve the lives, living conditions and education, employment and entrepreneurial opportunities for
North Carolina’s poorest citizens during the 2006 calendar year.
Summary of Housing Needs
Every five years, for the benefit of the U. S. Department of Housing and Urban Development, our
partnering agencies, and the public, the State prepares a five- year housing strategy outlining North
Carolina’s plans for meeting housing and community development needs. This cycle’s five- year strategy,
called the North Carolina Consolidated Plan 2006- 2010, lays out the priority needs for North Carolina,
which are based upon housing and population information captured from census data special tabulations,
which yield the incidence of certain housing problems ( overcrowding, inadequate plumbing facilities, cost
burden, etc.) among the population. The five- year plan also sets the framework from which each year’s
annual action plan can be drawn. The Annual Action Plan further details how the State will accomplish
its five- year goals during annual program cycles.
The needs listed below are those identified through the Consolidated Plan process through quantitative
data, qualitative data, and numerous public meetings with major stakeholders and citizens across the state.
Because the State cannot possibly meet all of the housing needs with its limited resources, when
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 4
Submitted to US HUD on March 28, 2007
determining those priority needs it also considered strategic investment and the appropriateness of
resources available to realistically meet the needs. Figure 1, the North Carolina Housing Priorities Chart,
details the state’s housing priorities based upon the Housing Market Analysis and Needs Assessment
performed as part of the 2006- 2010 Consolidated Plan.
Table 1, North Carolina Housing Priorities Chart
Homeless Persons Renters at 31- 50% Renters at 51- 80%
Operating Costs for Homeless Providers Financing of Rental Rehabilitation Financing of Rental Rehabilitation
Supportive Services Financing of New Construction Financing of New Construction
Emergency Shelter Construction and Rehabilitation Homeowners at 31- 50% Homebuyers at 30- 80% in areas where
Supportive Housing Comprehensive Rehabilitation needs are not met by the market
Non- Homeless Persons w/ Special Needs** Refinancing Individual Development Accounts
Rent Assistance First and Second Mortgages
Supportive housing Downpayment Assistance
Operating Assistance Financing of New Construction
Supportive Services Homeowners at 51- 80% where needs are
Renters at 0- 30% not met by market
Rent Assistance Comprehensive Rehabilitation
Homeless Prevention Refinancing
Financing of Rental Rehabilitation
Financing of New Construction
Homeowners at 0- 30%
Urgent Repair
Comprehensive Rehabilitation
Foreclosure Prevention Activities
Homeless Persons Renters at 51- 60% Renters at 61- 80%
Operating Costs for Homeless Providers Financing of Rental Rehabilitation Financing of new construction
Supportive Services Financing of New Construction Financing of rental rehabilitation
Emergency Shelter Construction and Rehabilitation Homeowners at 0- 50% Homebuyers at 30- 80% in areas where
Supportive Housing Comprehensive Rehabilitation needs are not met by market
Non- Homeless Persons w/ Special Needs** for the Non- elderly Individual Development Accounts
Rent Assistance Replacement Housing First and Second Mortgages
Supportive Housing Refinancing Downpayment Assistance
Operating Assistance Residential Water/ Sewer Infrastructure Financing of New Construction
Supportive Services Homeowners at 51- 80%
Renters at 0- 50% Comprehensive Rehabilitation
Rent Assistance Refinancing
Homeless Prevention Residential water/ sewer infrastructure
Financing of Rental Rehabilitation
Financing of New Construction
Homeowners at 0- 50%
Urgent Repair
Comprehensive Rehabilitation
Replacement Housing
Foreclosure Prevention Activities
Residential Water/ Sewer Infrastructure
( when danger to public health )
** Includes the following:
Persons with Disabilities
Low- income Elderly Persons
Persons with HIV/ AIDS
Rural
High Medium Low
Urban
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 5
Submitted to US HUD on March 28, 2007
SUMMARY OF RESOURCES
In 2006, the State assisted approximately 18,000 households through four core programs, which funded
the construction/ rehabilitation of housing units, and provided assistance for home- buyer initiatives, rental
assistance, and housing- related and homeless services. These four programs are:
The Small Cities Community Development Block Grant Program ( CDBG)
Funds help local governments improve deteriorating residential neighborhoods,
support public services, install water and sewer facilities for residential areas or
to job- creating industrial sites, and provide loans to large and small businesses.
The North Carolina Department of Commerce’s Division of Community Assistance
administers CDBG funds for community development activities, while funds for economic development
activities are administered by the North Carolina Commerce Finance Center. In 2006, North Carolina
received $ 45,196,659 for the state’s Small Cities CDBG program.
The HOME Investment Partnerships Program ( HOME)
Funds help local governments, nonprofit organizations, and developers build or improve affordable
housing and provide rental assistance and affordable second mortgages. HOME is administered by the
N. C. Housing Finance Agency. This year the N. C. Housing Finance Agency received $ 19,098,280 in
resources through the HOME program. The State’s General Assembly appropriated $ 1,750,945 in public,
nonfederal funds to match the federal HOME funds.
The American Dream Downpayment Initiative Program ( ADDI)
Funds help low- income first- time homebuyers to purchase affordable homes. ADDI is administered by
the N. C. Housing Finance Agency. The Agency received $ 338,860 in ADDI funds for Federal Fiscal
Year 2006.
The Emergency Shelter Grants Program ( ESG)
Funds help local governments and nonprofit organizations support emergency shelters and transitional
housing for the homeless, provide essential services, and prevent homelessness. ESG is administered by
the Office of Economic Opportunity in the N. C. Department of Health and Human Services. In 2006 the
State received $ 2,495,801 in resources through the ESG program.
Housing Opportunities for Persons With AIDS Program ( HOPWA)
Funds help local health departments, non- profit community based organizations, housing authorities,
AIDS service organizations and other interested provider agencies meet the housing needs of persons
living with AIDS or related diseases, and their families. The AIDS Care Unit in the Department of Health
and Human Services administers the HOPWA Program. This year the State received $ 2,097,000 in
resources through the HOPWA program.
These funds, along with other private and nonfederal resources, were available in 2006 to address
program goals, priority needs, and specific objectives described in the 2006 Annual Action Plan. The
table below, Housing Resources by Funding Source and Administering Agency, summarizes the resources
used in the state for affordable housing.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 6
Submitted to US HUD on March 28, 2007
Table 2, Housing Resources by Funding Source and Administering Agency
Name of Program Administering
Agency
Anticipated
Funding for
FY 06 ( in
$ 000s)
Actual
Funding for
FY 06 ( in
$ 000s)
Program
Directly
Administered?
Not administered directly, funds are
distributed to…
Federal Funds
CDBG ( 1) Small Cities
Community
Development Block
Grant Program
Division of
Community
Assistance
26,606 24,360 No Units of local government in non-entitlement
areas
HOME &
ADDI
Down Payment
Assistance Program
NCHFA 653 260 No Private mortgage lenders
HOME IDA Loan Pool
Program
NCHFA 777 1,560 No Nonprofit organizations and units of
local government
HOME New Homes Loan
Pool Program
NCHFA 2,849 5,088 No Nonprofit organizations and units of
local government
HOME Rural Opportunity
Mortgage Program ( 3)
NCHFA 5,179 13,302 No USDA
HOME Rental Production
Program
NCHFA 5,179 7,935 Yes
` HOME Rental Preservation
Loan Program ( 3)
NCHFA 2,590 5,750 Yes
HOME Self- Help Housing
Program
NCHFA 1,657 5,350 No Self- help housing organizations
HOME Single- Family
Rehabilitation
Program
NCHFA 4,143 6,900 No Units of local government, nonprofits
and regional agencies
HOME Supportive Housing
Development
Program
NCHFA 1,036 3,363 Yes
ESG*( 2) Emergency Shelter
Grants Program
Office of
Economic
Opportunity
2.425
FY 06- 07
2,495 No Nonprofit organizations and units of
local government
HOPWA* Housing
Opportunities for
Persons with AIDS
Program
AIDS Care
Unit
2,097 2,097 No HIV Care Consortia, nonprofit
organizations, adult day care
providers, family care homes, and
housing authorities
Nonfederal Public Resources ( State Funds)
HTF Rental Production
Program
NCHFA 4,500 4,515 Yes
HTF Supportive Housing
Development
Program
NCHFA 3,000 3,470 Yes
HOME
Match
Key Program
( TBRA in
partnership with
DHHS)
NCHFA 2,800 2,800 Yes
HPPP
Appropriation
Home Protection
Pilot Program
NCHFA 700
1,435 Yes
HTF and
Other Agency
Funds
Urgent Repair
Program
NCHFA 2,500 2,123 No Units of local government, nonprofits
and regional agencies
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 7
Submitted to US HUD on March 28, 2007
Other Sources
Housing Tax
Credits*( 4)
Federal and State
Housing Credits
NCHFA 149,940 149,940 Yes
Mortgage
Credit
Certificate*
Private Activity
Volume Cap
Allocation
NCHFA 100,000 100,000 No Private mortgage lending institutions
statewide
Mortgage
Revenue
Bonds*
Mortgage Loan
Program
NCHFA 237,500 195,000 No Private mortgage lending institutions
statewide
( 1) The CDBG funds in this table and this report are only those funds designated strictly for housing activities; CDBG funds used in the economic
development, infrastructure ( excluding hook- ups), urgent needs, and capacity building categories are not included. Total dollar amounts are also
exclusive of administration and technical assistance costs.
( 2) Must be used for shelter operations, client services and homeless prevention
( 3) Includes 4% bonds.
( 4) Figure is equity generated, not credits allocated.
* These programs have funding that must be used for a specific housing- related activity and/ or must be targeted for specific populations
( nondiscretionary funding). The other programs' funding may have income restrictions, but the types of housing activity and target population are
not restricted ( discretionary funding).
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 8
Submitted to US HUD on March 28, 2007
Distribution of Resources
Each of the four participating agencies that comprise the CAPER receives funds from the United States
Department of Housing and Urban Development. Following is a brief discussion of the distribution of
these resources for the 2006 program year.
Division of Community Assistance
Community Development Block Grant Program ( CDBG): Approximately $ 45 million was committed
to the Small Cities Community Development Block Grant program during 2006. Of that amount,
approximately $ 24 million was allocated statewide for direct housing purposes; twenty- five percent, 25%,
of these funds were awarded competitively and the remaining seventy- one percent, 71%, was distributed
on a non- competitive basis. The remaining $ 19 million was designated for capacity building, economic
development, infrastructure, administrative support, and other non- housing related activities.
North Carolina Housing Finance Agency
HOME Investment Partnerships Program ( HOME): In 2006, HFA invested HOME funds among four
main activities: approximately $ 23.8 million, or 64% of the funding, was invested in homebuyer
activities; approximately $ 9.7 million, or 27% of the funding, was invested in rental housing activities
( both production and preservation); $ 2.8 million, or 8% of the funding, was invested in rental assistance
for disabled populations; and approximately $ 245,000, or 1% of the funding, was invested in homeowner
rehabilitation activities. Although none of the supportive housing developments that had previously been
awarded HOME funds were completed during 2006 ( so this report shows zero HOME investment in
supportive housing), two supportive housing developments ( housing 15 people) funded with sources other
than HOME were completed during the year.
Office of Economic Opportunity
Emergency Shelter Grants: A total of $ 2,371,011 of the State’s FY 2006 ESG allocation, or ninety- five
percent, 95%, was awarded to 117 nonprofit organizations and three units of local government operating a
total of 132 shelters for the homeless in 50 counties. The remaining $ 124,790, or five percent, 5%, was
used for program administration. Eligibility for funding was determined through a pre- application
review. Applicants meeting all program criteria were notified of their approved funding level and given a
full application package. Grant agreements were executed in June and all program funds were disbursed.
AIDS Care Unit
Housing Opportunities for Persons with AIDS Program: The HOPWA program’s annual allocation
can be used over a period of three years from the date of receipt. $ 62,910, or three percent, 3%, was set
aside for grantee administration and $ 2,034,090, or ninety- seven percent, 97%, was awarded to 17 project
sponsors through a continuation application process. These providers include family care homes, adult
day/ health service centers, HIV Care Consortia, housing authorities and other nonprofit agencies that
provide housing and related services to persons living with HIV/ AIDS and their families.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 9
Submitted to US HUD on March 28, 2007
Geographic Distribution of Resources
Each of the four programs has unique methods of geographic distribution. Funding for the Community
Development Block Grant Program is directed to non- entitlement communities. Emergency Shelter
Grant, HOPWA and HOME funds are distributed statewide. For the HOPWA program, the home county
of the agency that received funds is shown on the map, even though that agency may serve multiple
counties. It is not possible at this time to report the amount of HOPWA funds spent in each county that a
multi- county agency serves. The following pages contain maps showing the actual distribution of funds
for the CDBG, HOME & ADDI, ESG, and HOPWA programs during 2006. Table 3, 2006 Funding
Distribution – All Programs, illustrates the amounts and locations of distributions.
Map 1, 2006 Total Funding Distribution – All Programs
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 10
Submitted to US HUD on March 28, 2007
Map 2, 2006 CDBG Funding Distribution
Map 3, 2006 HOME & ADDI Funding Distribution
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 11
Submitted to US HUD on March 28, 2007
Map 4, 2006 ESG Funding Distribution
Map 5, 2006 HOPWA Funding Distribution
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 12
Submitted to US HUD on March 28, 2007
HOUSEHOLDS AND PERSONS ASSISTED
Racial and Ethnic Status of Households Assisted
Table 3, Racial and Ethnic Status of Households – CDBG and HOME Funded Projects, and
Table 4, Racial and Ethnic Status of Households – ESG and HOPWA Funded Projects, indicate
the racial and ethnic groups of assisted households. Improved reporting methods have
minimized the number of households in the unknown category.
Table 3, Racial and Ethnic Status of Households – CDBG and HOME Funded Projects
Race/ Ethnic Group
Number
Assisted
Percentage
Assisted
American Indian/ Alaska Native 43 < 1%
Asian 5 < 1%
Black/ African American 9,455 68%
Native Hawaiian/ Other Pacific Islander 11 < 1%
White 4,237 30%
American Indian/ Alaska Native and
Black/ African American 15 < 1%
American Indian/ Alaskan Native & White 5 < 1%
Asian and White 0 < 1%
Black/ African American and White 41 < 1%
Other Multi- racial 132 2%
Unknown race 13 < 1%
CDBG & HOME Total 13,959 100%
Hispanic 1 78 10%
Nonhispanic 1 533 68.4%
Unknown ethnicity 1 168 21.6%
HOME Total* 779 100%
* Data on Hispanic and Nonhispanic persons were unavailable for the CDBG program. CDBG data includes both households
and persons assisted.
Table 4, Racial and Ethnic Status of Households – ESG and HOPWA Funded Projects
Percentage Assisted
Race/ Ethnic Group ESG HOPWA
Black/ African American 52% 77%
White 38% 20%
Asian 0.3% < 1%
Native American 0.5% 1%
Other 3.2% 1%
Hispanic 1 6% unknown
1 Hispanics are considered an ethnic group and not a race. Beginning in 2006, HUD did not require collection of
data for Hispanic populations. Data were unavailable for some programs.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 13
Submitted to US HUD on March 28, 2007
Households Assisted According to Priority Need Category
Division of Community Assistance
DCA provides assistance for individuals and families through six major categories:
• Community Revitalization: including Concentrated Needs and Revitalization Strategies;
• Scattered Site Housing;
• Infrastructure;
• Housing Development;
• Economic Development; and,
• Urgent Needs/ Contingencies.
DCA saw continued success of the CDBG program in assisting low- to- moderate income persons with
housing and infrastructure improvements. DCA provided direct housing assistance to 719 households in
2006. Encapsulating all of DCA’s programs to include infrastructure, urgent needs, and other community
development activities, a total of 8,825 households were provided assistance ranging from clean drinking
water, improved public services, financial literacy training to help lift them out of poverty, employment
possibilities that were non- existent prior to the business moving to where they lived, and access to
medical and dental care that was previously unobtainable.
The Scattered Site Housing program was able to target residents throughout the state and remain on target
for funding levels. The success of the Scattered Site program is most likely due to grantees fully
adjusting to the non- competitive, three- year cycle of the program. The first wave of Scattered Site grants
to be awarded under this format was funded in 2001, and the 2006 grantees began their second wave of
Scattered Site Housing grants through this distribution method. The success of this program indicates the
ability of local governments to plan forward for funding and act accordingly.
Actual accomplishments met goals laid out in the 2006 annual action plan in most categories. However,
due to the rising costs of construction, it remains difficult for DCA and its grantees to continue to provide
necessary services at past funding levels. The one category that did not perform at expected levels was
the Infrastructure Hook- Up category, which provides funds to assist low- to- moderate income
homeowners hook- up to existing water and/ or sewer lines. Demand for this category was down from
previous years, and for that reason both funding and households assisted were below expected levels.
North Carolina Housing Finance Agency
The NCHFA invests HOME and HOME Match funds in homebuyer assistance, rental production, rental
rehabilitation, rehabilitation of owner- occupied housing, development of supportive housing for persons
with disabilities and homeless people, and rental assistance for people with disabilities.
Overall, 17% of the Agency’s total 2006 HOME investment and 19% of the units were for high- priority
activity, 14% of the investment and 24% of the units were for medium- priority activity, and 69% of the
investment and 57% of the units were for low- priority activity.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 14
Submitted to US HUD on March 28, 2007
Chart 1, HOME & ADDI Funding and Households Served in 2006
HOME & ADDIT Funding ( in thousands) and Households
Assisted in 2 006, by Priority Category
6,324 293
5,088
377
25,130 909
0%
20%
40%
60%
80%
100%
Investment Households
High priority Medium priority Low priority
Table 6 compares projected 2006 investment and units to units placed in service during 2006 and their
investment. For HOME- funded programs, the projections for 2006 were one- fifth of the HOME
investment and HOME- financed units projected for the 5- year period covered by the 2006- 2010 Strategic
Consolidated Plan.
In the Supportive Housing Development Program, the Single Family Rehabilitation Program, and
the Preservation Loan Program the actual number of units placed in service in 2006 and their
investment was much less than one- fifth of the activity projected in the 2006- 2010 Strategic Consolidated
Plan. This difference can primarily be explained by the amount of time it takes a project to move from
the financing stage to the completion stage, often as long as two to three years; a project financed in 2004
may not be completed and placed in service until 2007. Under the Single Family Rehabilitation
program the Agency made no awards during 2003 and very few awards in 2004; the units placed in
service in 2006 were the first units of the 2004 and 2005 awards ( as would be expected, given the lag
between when awards are made and when construction on individual units is completed). The
Preservation Loan Pool program is a brand new program; the first awards were made in fall of 2005.
Because of the time it takes for construction to be completed, the Agency expects the first projects to be
completed during 2007. In addition to the development time between award and project completion, the
Supportive Housing Development Program also faces the problem of providing supportive services.
Few of the applicants to this program have the capacity to adhere to HUD regulations, resulting in fewer
HOME- funded Supportive Housing projects. Despite these difficulties, two developments ( not reported
in the CAPER tables because they were not funded with HOME) were placed in service in 2006,
providing 15 supportive housing units.
The Agency invested noticeably more in the Rental Production Program than 1/ 5 of the 5- year plan
forecasts. This is due to the variability in development time among projects, even projects awarded at the
same time. Certain years more HOME- funded projects are completed than were awarded 2 years prior,
and other years fewer are completed. The figures in this report are of HOME- funded projects completed
during 2006, not projects which were awarded HOME in 2006.
Overall the Agency invested more in homebuyer assistance programs than the forecasted 1/ 5 of the 5- year
plan figures. Less HOME was invested in the Downpayment Assistance Program ( the Agency’s
$ 7,000 subordinate financing program) than the Agency had forecasted; the Agency was forced to
decrease HOME funds for this program because of HUD’s stricter regulations regarding HOME for the
purchase of existing homes. This decision was made because of HUD’s requirement that HQS
inspections be carried out for all non- new homes assisted with HOME funds, which made using HOME
for downpayment assistance on existing construction infeasible. In contrast, the Rural Opportunities
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 15
Submitted to US HUD on March 28, 2007
Mortgage program, which is a first- mortgage program in which the Agency partners with USDA to assist
homebuyers in rural areas, produced more than 1/ 5 of the forecast in the 2006- 2010 Consolidated Plan.
The other homebuyer assistance program performed approximately as expected. Although all homebuyer
assistance activity is low priority according to the 2006- 2010 Strategic Consolidated Plan, the Agency is
pleased to be serving households with very modest incomes; the average household income in the units
funded with HOME in 2006 was approximately $ 28,000. The Agency has discovered, while HOME is
useful for funding homeownership, that it is very difficult to use HOME funds to serve the highest-priority
end of the housing spectrum; it is thankful to have state funding to serve these high- priority
populations.
Office of Economic Opportunity
Approximately 45,000 homeless families and individuals sought assistance from 132 homeless shelter
facilities in 50 counties. Eighty- six percent of FY 2006 ESG funding was used to pay operating expenses,
i. e., rent, utilities, supplies/ materials, equipment and administrative costs. Five percent ( 5%) of the
funding was used to provide essential services such as counseling, transportation, health care, housing
referral, employment and/ or education services. Four percent ( 4%) was used to provide homeless
prevention services that include short- term subsidies to defray rent and utility arrearages, security deposits
or first month’s rent payments. The remaining five percent of FY 2006 ESG funding was used for
program administrative costs incurred by the Office of Economic Opportunity.
AIDS Care Unit
The HOPWA Program assisted 2,662 persons living with HIV/ AIDS and their families through the
following programs:
• Tenant- based rental assistance program;
• Short- term rent mortgage and utility program;
• Supportive service;
• Resource identification;
• Housing information; and
• Adult day care facilities and family care homes.
The 2004 statewide HOPWA needs assessment indicated the need to increase permanent supportive
housing; consequently, short term rent, mortgage and utility payments decreased from 65% to 35% in FY
2006.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 16
Submitted to US HUD on March 28, 2007
Summary Tables
Table 5, Summary of Funding Distribution of the Four Core Programs, depicts how the state met its
priorities in comparison with the anticipated funding distribution contained in the 2006 Consolidated
Annual Action Plan. The state spent forty- four percent ( 44%) of its funding on high priority needs;
fourteen percent ( 13%) on medium priority needs; and forty- two percent ( 43%) on low priority needs.
Table 5, Summary of Funding Distribution of the Four Core Programs
High Priorities Medium Priorities Low Priorities
Amount Percent Amount Percent Amount Percent
Anticipated $ 32,922,000 59% $ 11,304,000 20% $ 12,066,000 21%
Actual $ 27,454,000 44% $ 8,387,000 13% $ 26,672,000 43%
Table 6, Federal Funding through the Core Programs – Housing Acquisition, Rehabilitation, Production
and Related Infrastructure, indicates how the four core programs were used. The table shows the funding
amounts ( in thousands of dollars) allocated for each priority need category ( low, medium, high) and
shows the number of households and individuals assisted. In reviewing the table, it is important to
recognize that the state considered strategic investment of its limited resources through its programs, as
well as the appropriateness of the resources available to address the priority need categories.
CDBG and HOME funds were used primarily to produce or rehabilitate housing, provide homebuyer
assistance, and develop infrastructure required for housing development. ESG funds were used to provide
shelter, essential services and homeless prevention activities to homeless individuals and households.
HOPWA funds were used to assist households and individuals with housing related services in both short
and long- term tenant- based rent assistance.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 17
Submitted to US HUD on March 28, 2007
Table 6 - Federal Funding through the Core Programs – Housing Acquisition,
Rehabilitation, Production, and Related Infrastructure – High Priority Needs
Priority Agency Funding
Source
Program Activity Anticipated
Funding in $ 000s
Actual Funding
in $ 000s
Anticipated
Households
Assisted
Actual Households
Assisted
High Priority Needs
DCA CDBG Housing Development Related Infrastructure $ 50 $ 0 3 0
NCHFA HOME Supportive Housing
Development Program*
New Construction $ 518 $ 0 26 0
OEO ESG ESG Support Funding for
Homeless Service
Providers**
$ 2,494 $ 2,496 6,000 households
and 30,000
individuals
4,463 households
and 30,578
individuals
DCA CDBG Concentrated Needs Rehabilitation,
Replacement
$ 651 $ 194 14 3
DCA CDBG Housing Development Related Infrastructure $ 162 $ 189 8 14
DCA CDBG Infrastructure Utility Hook- Up $ 85 $ 0 28 0
DCA CDBG Revitalization Strategies Rehabilitation,
Replacement
$ 110 $ 36 2 1
DCA CDBG Scattered Sites Rehabilitation,
Replacement
$ 1,128 $ 305 25 6
NCHFA HOME &
Match
Supportive Housing
Development Program*
New Construction $ 518 $ 0 26 0
ACU HOPWA HOPWA Rent Assistance*** $ 1,135 $ 1,280 1,419 1,735
ACU HOPWA HOPWA Housing- Related
Services****
$ 560 $ 817 3,000 117
DCA CDBG Concentrated Needs Rehabilitation,
Replacement
$ 1,627 $ 1,412 36 24
DCA CDBG Housing Development Related Infrastructure $ 495 $ 169 83 40
DCA CDBG Infrastructure Utility Hook- Up $ 212 $ 15 71 5
DCA CDBG Revitalization Strategies Rehabilitation,
Replacement
$ 275 $ 75 6 2
NCHFA HOME
Match
Preservation Loan Program Rehabilitation $ 1,295 $ 0 633 0
NCHFA HOME Rental Production Program New Construction,
Rehab*****
$ 2,020 $ 3,349 125 202
NCHFA HOME &
Match
Key Program Tenant Based Rental
Assistance******
$ 2,800 $ 2,800 125 85
DCA CDBG Concentrated Needs Rehabilitation,
Replacement
$ 1,953 $ 4,401 43 192
DCA CDBG Infrastructure Utility Hook- Up $ 255 $ 37 85 31
DCA CDBG Revitalization Strategies Rehabilitation,
Replacement
$ 6,430 $ 200 143 20
DCA CDBG Scattered Sites Rehabilitation,
Replacement, Urgent
Repair
$ 5,414 $ 9,504 120 275
NCHFA HOME &
Match
Single Family RehabProgram Rehabilitation $ 2,735 $ 175 68 6
Total High Priority $ 32,922 $ 27,454 6,089 2,758
** Funding to assist with operating costs of homeless shelters, provision of services to homeless clients and homeless prevention activities.
*** For HOPWA, " rent assistance" inlcudes short term rent, mortgage, and utility payments ( STRMU) as well as tenant- based rent assistance ( TBRA).
**** Includes housing information, resource identification, supportive services, and operating expenses for dedicated housing facilities.
****** These are the 2006 awards to be disbursed monthly over the next 10 years.
Assist Homeless Families and
Individuals
Assist Rural Renters Earning 0- 50% of
Median Family Income and Urban
Renters Earning 0- 30% of Median
Family Income
* Although NCHFA place 2 Supportive Housing projects into service in 2006, they were funded with sources other HOME.
Assist Rural Elderly Homeowners
Earning 0- 50% of Median Family
Income and Urban Homeowners
Earning 0- 30% of Median Family
Income
Assist Non- Homeless Persons with
Special Needs
***** A portion of these units will serve homeless households. The Agency has no way of forecasting how many of these households will be homeless.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 18
Submitted to US HUD on March 28, 2007
Table 6 ( Continued) - Federal Funding through the Core Programs – Housing Acquisition,
Rehabilitation, Production, and Related Infrastructure – Medium Priority Needs
Priority Agency Funding
Source
Program Activity Anticipated
Funding in $ 000s
Actual Funding
in $ 000s
Anticipated
Households
Assisted
Actual Households
Assisted
Medium Priority Needs
DCA CDBG Concentrated Needs Rehabilitation,
Replacement
$ 977 $ 149 22 2
DCA CDBG Housing Development Related Infrastructure $ 297 $ 0 50 0
DCA CDBG Infrastructure Utility Hook- Up $ 128 $ 0 43 0
DCA CDBG Revitalization Strategies Rehabilitation,
Replacement
$ 165 $ 0 4 0
NCHFA HOME
Match
Preservation Loan Program Rehabilitation $ 1,295 $ 0 633 0
NCHFA HOME Rental Production Program New Construction,
Rehabilitation
$ 2,331 $ 5,018 144 375
DCA CDBG Concentrated Needs Rehabilitation,
Replacement
$ 977 $ 1,284 22 33
DCA CDBG Infrastructure Utility Hook- Up $ 128 $ 90 43 38
DCA CDBG Revitalization Strategies Rehabilitation,
Replacement
$ 165 $ 222 4 4
DCA CDBG Scattered Sites Rehabilitation,
Replacement, Urgent
Repair
$ 3,722 $ 1,554 83 20
NCHFA HOME &
Match
Single Family RehabProgram Rehabilitation $ 1,119 $ 70 28 2
Total Medium Priority $ 11,304 $ 8,387 1,076 474
Assist Rural Non- Elderly Homeowners
Earning 0- 50% of Median Family
Income and Urban Homeowners
Earning 31- 50% of Median Family
Income
Assist Rural Renters Earning 51- 60%
of Median Family Income and Urban
Renters Earning 31- 50% of Median
Family Income
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 19
Submitted to US HUD on March 28, 2007
Table 6 ( Continued) - Federal Funding through the Core Programs – Housing Acquisition,
Rehabilitation, Production, and Related Infrastructure – Low Priority Needs
Priority Agency Funding
Source
Program Activity Anticipated
Funding in $ 000s
Actual Funding
in $ 000s
Anticipated
Households
Assisted
Actual Households
Assisted
Low Priority Needs
DCA CDBG Concentrated Needs Rehabilitation,
Replacement
$ 130 $ 299 3 5
DCA CDBG Housing Development Related Infrastructure $ 50 $ 0 8 0
DCA CDBG Infrastructure Utility Hook- Up $ 17 $ 0 6 0
DCA CDBG Revitalization Strategies Rehabilitation,
Replacement
$ 22 $ 0 1 0
NCHFA HOME Rental ProductionProgram New Construction,
Rehabilitation
$ 829 $ 1,319 51 131
DCA CDBG Concentrated Needs Rehabilitation,
Replacement
$ 195 $ 426 4 13
DCA CDBG Infrastructure Utility Hook- Up $ 26 $ 7 9 10
DCA CDBG Revitalization Strategies Rehabilitation,
Replacement
$ 33 $ 548 1 8
NCHFA HOME &
Match
Single Family Rehab Rehabilitation $ 290 $ 0 7 0
DCA CDBG Housing Development Related Infrastructure $ 567 $ 240 32 11
DCA CDBG Individual Development
Account
Downpayment
Assistance
$ 160 $ 22 80 22
NCHFA HOME &
ADDI
Downpayment Assistance
Program
Homebuyer
Assistance
$ 5,179 $ 455 104 68
NCHFA HOME IDA Loan Pool Homebuyer
Assistance
$ 653 $ 1,269 93 67
NCHFA HOME New Homes Loan Pool Homebuyer
Assistance
$ 777 $ 4,086 40 184
NCHFA HOME Rural Opportunities Mortgage
Program
Homebuyer
Assistance
$ 290 $ 13,451 7 273
NCHFA HOME Self Help Pool Homebuyer
Assistance
$ 2,849 $ 4,550 142 186
Total Low Priority $ 12,066 $ 26,672 588 978
TOTAL FEDERAL FUNDING $ 56,292 $ 62,513 7,753 4,210
Assist Rural Homeowners Earning 51-
80% of Median Family Income and
Urban Homeowners Earning 51- 80%
of Median Family Income where needs
are not met by the market
Assist Rural Renters Earning 61- 80%
of Median Family Income and Urban
Renters Earning 51- 80% of Median
Family Income
Assist Homebuyers Earning 30- 80% of
Median Family Income where needs
are not met by the market
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 20
Submitted to US HUD on March 28, 2007
ACTIONS TAKEN TO MEET HOUSING AND SERVICE RELATED
OBJECTIVES IN 2006
The 2006 North Carolina Consolidated Plan outlined housing and service- related objectives for each of
the participating agencies. Following is a list of those objectives for each agency, the actions taken
during the 2006 program year, and their status.
Division of Community Assistance
To target investments toward distressed rural areas and high
priority small cities through the Commerce Department’s
21st Century Communities Initiative, State Development
Zones, Tier 1 & Tier 2 counties, and support the EDA-funded
Comprehensive Economic Development Strategies
( CEDS).
Status: A third round of 21 st Century Communities was
announced in 2005 for the 2005– 2007 period. These latest
21 st Century Communities are Burke, Hyde, Montgomery,
and Sampson counties. Special emphasis was continued for round one and two 21 st Century
Communities, for which continuing need was deemed necessary, applying for CDBG program
funds. In the Infrastructure category, however, only those communities in the second round of
the 21 st Century Communities program and not funded in the Infrastructure category in 2005 were
eligible in 2006.
In support of this initiative, one half of the funds allocated for the Infrastructure Program in 2006
were set- aside for 21 st Century Communities. In addition, in the Economic Development
Category, additional per job funding was available for local governments participating the 21st
Century Communities program and for projects locating in State Development Zones or Urban
Progress and State Agrarian Zones.
Within the Housing Development category in 2006, preference was given for rental housing
developments that were: ( 1) within local governments from Tier 1 or Tier 2 counties, ( 2) projects
in State Development Zones or Urban Progress and State Agrarian Zones, which are consistent
with local strategies for improving the zone, and ( 3) local governments in 21 st Century counties.
The Revitalization Strategies category was continued in 2006. During its fifth year of funding in
2006, the Revitalization Strategies program allowed for a holistic approach to community and
economic development by enabling local governments to address multiple needs in high poverty
areas. This category provides flexible multi- year funding to help alleviate poverty and carry out a
long- term, sustainable revitalization strategy in selected target neighborhoods. Activities such as
housing and self- sufficiency counseling, job training, and downpayment assistance helped
residents of target areas pull themselves out of poverty. Revitalization Strategies communities
are required to be located in a Tier 1 or 2 county or a State Development Zone.
To support development of soundly designed affordable rental and single- family housing in
appropriate settings.
Status: In 2006, DCA continued to use smart growth guidelines in the Housing Development
Category. These guidelines are designed to stimulate high quality, sustainable development in
LMI neighborhoods throughout the state. The guidelines incorporate sound development
practices while balancing environmental protection with the economic needs of builders and
future homeowners. To receive housing development funds subdivisions had to meet the
following minimum requirements: ( 1) be connected to public water and sewer, ( 2) be located in
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 21
Submitted to US HUD on March 28, 2007
or near an existing community, ( 3) have streets that met NCDOT standards and connected to
public streets, ( 4) all cul- de- sacs had to be less than sixteen lots, ( 5) have a 30- foot buffer on each
side of all perennial streams, and ( 6) include some open space in the development.
To emphasize smart growth principles in CDBG program categories. Priority for funding will be
given to projects that demonstrate design excellence, infill development, and more intense use of
existing buildings in downtowns and nearby older neighborhoods.
Status: The Division continues to support proper new affordable rental and single- family housing
through its Housing Development category. This increase in the stock of sound affordable
housing improves the lives of hundreds of LMI residents across the state.
North Carolina Housing Finance Agency
To operate home ownership programs:
- Close 2,200 MRB loans and 250 MCC assisted loans
- Close 104 Rural Opportunity Mortgage ( ROM) loans in conjunction with USDA’s 502 direct
program.
- Close 142 loans under the New Homes Program, 83 loans under the Self- Help Housing
Program, and 40 loans under the IDA partnerships
- Rehabilitate 103 homes under the Single Family Rehab Program and 600 homes under the
Urgent Repair Program
Status: The Agency assisted 2,173 households through its MRB program and 44 households
through its MCC program in 2006. 273 households in rural areas were assisted through the ROM
program. The Agency financed 177 homes under the New Homes Loan Pool, 188 under the Self-
Help Loan Pool, and 80 under the IDA Program. The Agency provided nearly $ 7.9 million in
financing through the Single- Family Rehabilitation Program during the 2006 calendar to assist
approximately 185 homeowners. The Agency provided $ 2.1 million in financing to assist
approximately 635 homeowners under the Urgent Repair Program.
To operate rental production programs:
- Allocate the state's $ 15 million federal Housing Credit volume cap
- Loan $ 9.6 million under the Rental Production Program
- Continue the refundable state Housing Credit
- Finance 10 projects with the capacity to serve approximately 200 individuals under the
Supportive Housing Program
Status: The Agency awarded tax credits to provide $ 144 million in federal tax credit equity and
$ 26 million in investment from state tax credits, for projects that will assist 2,354 households.
The Agency awarded $ 10.8 million in Rental Production Program loans in 2006, to assist in the
production of 780 units. The Agency awarded $ 6.2 million to nonprofit service providers through
the Supportive Housing Development Program to help create 291 total units ( in 12 different
projects) of housing for individuals with special needs.
Office of Economic Opportunity
To ensure the provision of emergency and/ or transitional housing, essential services, and/ or
homeless prevention services to approximately 30,000 homeless individuals and 6,000 homeless
families. It is anticipated that over 100 nonprofit organizations and three units of local
government operating over 130 emergency and/ or transitional facilities in 50 to 55 of the state’s
100 counties will be funded in FY 2006.
Status: FY 2006 State ESG funding was distributed to 129 non- profit organizations and three
units of local government in 50 counties. These facilities provided shelter and/ or services to
approximately 31,000 homeless single individuals and 14,000 members of homeless families.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 22
Submitted to US HUD on March 28, 2007
To successfully coordinate the 2006 North Carolina Conference on Homelessness which will
provide opportunities for homeless service providers to receive training and technical assistance.
Status: The Interagency Council for Coordinating Homeless Programs ( ICCHP) assumed
responsibility for the operation of the state’s annual Conference on Homelessness in January of
2006. Due to scheduling conflicts, the Council decided not to have a conference in 2006, but to
schedule a conference for April of 2007.
To continue its involvement with the North Carolina Interagency Council for Coordinating
Homeless Programs ( ICCHP).
Status: In 2006 OEO continued its participation in activities of the ICCHP by serving as a
member agency of the Council.
To work with the ICCHP to implement strategies and policies outlined in the state’s ten- year plan
to end homelessness in North Carolina.
Status: As a member agency of the ICCHP, OEO provided input into the implementation of
strategies and policies developed by the Council.
AIDS Care Unit
To provide additional resources and research on funding opportunities for project sponsors
through regularly scheduled HOPWA planning meetings.
Status: The Housing Coordinator for the state presented at a HOPWA Project Sponsor meeting
and informed the projects of other housing programs and possible funding.
To review internal processes for making funding decisions and planning new initiatives.
Status: This activity is ongoing. FY 2006 funds were used to help rehabilitate a family care
home.
To hold training workshops on current trends in HIV housing.
Status: HOPWA Project sponsors attended a meeting on the new performance measurement tool
and how to utilize this tool.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 23
Submitted to US HUD on March 28, 2007
ACTIONS TAKEN TO AFFIRMATIVELY FURTHER FAIR HOUSING
Each of the four agencies undertook actions to further fair housing
Fair Housing Activities
The Division of Community Assistance contracted with the North Carolina Fair Housing Center to
analyze impediments to fair housing choice in North Carolina as part of the 2006- 2010 Consolidated
Plan. The four partnering agencies agree to promote fair housing, housing choice and equal opportunities
through the programs they administer.
Division of Community Assistance
The Division will continue to implement various strategies, chief of which is to increase local
activities that identify and reduce barriers to fair and affordable housing in all localities receiving
Community Development Block Grant Program funding.
Status: DCA continues to monitor grantees on compliance with fair housing laws and updated its
Analysis of Impediments to Fair Housing for 2006- 2010.
North Carolina Housing Finance Agency
The Agency will continue to ( 1) distribute its Elderly Housing Rights and
Consumer Protection Program information brochures, ( 2) provide Fair Housing
training in conjunction with its Housing Credit Program Compliance and
Service Coordinator workshops, and ( 3) publish Spanish translations of its
MRB and MCC Program information.
Status: The Agency continued all of these activities in 2006. The Agency has
continued to distribute its Elderly Housing Rights and Consumer Protection
Program information brochures through its partners including housing
counseling, legal services, area agencies on aging and advocate organizations
as well as individuals. HFA continued to provide Fair Housing training as a
part of its RPP Training and Tax- Credit Training, which were held nine times
in 2006. The Agency also continued to make available the Fair Housing for Tenants with
Disabilities: Understanding Reasonable Accommodations and Reasonable Modifications guide.
In 2006, NCHFA unveiled a Spanish language version of its website, on which translations of
MRB and MCC program brochures, as well as information about other Agency activities, were
made available to the Spanish- speaking population.
All developers of affordable rental housing financed by the Agency are required to develop and
implement Affirmative Fair Housing Marketing Plans, which are reviewed by the Agency for
effectiveness and proper implementation. Projects receiving HOME loans must certify that they
have developed and adopted affirmative marketing procedures for HOME- assisted housing
containing five or more units.
Status: The Agency successfully carried out this function.
The Agency will publicize the availability of its updated guide published in October 2005, Fair
Housing for Tenants with Disabilities: Understanding Reasonable Accommodations and
Reasonable Modifications. The Guide will also be included in the Agency’s annual training for
LIHTC rental property managers.
Status: The Agency continues to make this guide available on its website. In addition, our
partners in this effort, the NC Justice Center and NC Department of Health and Human Services,
have conducted a series of Fair Housing trainings across the state.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 24
Submitted to US HUD on March 28, 2007
The Agency will solicit voluntary agreements with two more lenders in 2006 to work together
with the Agency in ensuring that every first- time home buyer in North Carolina is informed about
the Agency’s loan programs during the loan application process.
Status: The Agency did not pursue any additional voluntary agreements with lenders in 2006, and
is not actively soliciting agreements at this time.
The Agency will process preliminary eligibility analysis to reach 250 prospective homebuyers in
unserved areas of the state. Renters will complete a worksheet and the Agency will assess the
renters’ eligibility for a mortgage and make a referral to a lender.
Status: The Agency processed 729 preliminary eligibility analysis requests in our effort to better
serve prospective homebuyers in unserved areas of the state. Renters completed a worksheet to
determine their readiness to become a homebuyer.
The Agency will work more closely with partners to educate homebuyers, increase the supply of
affordable housing, provide assistance with downpayment and closing costs and offer financial
options to support HUD’s “ Blueprint for the American Dream”.
Status: The Agency developed a continuing education course for loan officers in conjunction
with NC Banking Commission. The NC Association of Realtors created Homes4NC in 2004 to
promote safe, decent and affordable housing, and the Agency’s executive director continues to
serve on the board.
The Agency, in partnership with USDA- Rural Development, will offer 200 leveraged loans to
serve low- income households in rural North Carolina through its Rural Opportunity Mortgage
program.
Status: The Agency awarded nearly 13.5 million dollars in leveraged loans in 2006 to serve
approximately 270 low- income households.
The Agency chairs the Housing Coordination and Policy Council, which is pursuing an effort to
evaluate local zoning barriers to affordable housing.
Status: The Agency continued to chair the HCPC council, with discussion of policy concerns and
recommendations to the Governor. The HCPC chose not to pursue an evaluation of local zoning
barriers in 2006.
AIDS Care Unit
The Unit will continue to expand the Tenant Based Rental Assistance program, which is designed
to increase housing choice for low- income persons with AIDS and their families.
Status: ACU currently funds four agencies that exclusively provide tenant- based rental
assistance. A Fair Housing pamphlet, sample letter for reasonable accommodations and other fair
housing topics were discussed at the annual HOPWA Project Sponsors meeting.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 25
Submitted to US HUD on March 28, 2007
OTHER ACTIONS INDICATED IN THE 2006 ACTION PLAN
Each of the four state agencies undertook additional actions to further the housing and support services
goals of their organizations in the following areas:
• Anti- Poverty Strategies;
• Capacity Building and Technical Assistance;
• Coordination and Collaboration;
• Housing Delivery Systems;
• Legislative and Public Policy Initiatives; and
• Lead- Based Paint Hazard Reduction.
Following are the agencies’ 2006 Annual Action Plan objectives and status summaries.
Support of Anti- Poverty Strategies
Division of Community Assistance
DCA continues to utilize Small Cities Community Development
Block Grant Funds for use in establishing or continuing Individual
Development Account ( IDA) programs throughout the state. IDAs
are dedicated savings accounts that can only be used for
purchasing a first home, education or job training expenses, or
capitalizing a small business. In DCA’s program, funding is
exclusively for home ownership. Only residents that are members
of households below 80 percent of MHI are eligible to participate.
In partnership with local governments, IDAs are managed by community organizations and
accounts are held at local financial institutions. Participants are introduced into the mainstream
financial system, provided credit counseling and homebuyer and financial literacy, and receive
match money for down payment assistance upon successful completion of the program.
Status: DCA allocated funding from its housing development category for three new IDA
programs.
Continuing decline and disinvestment in many neighborhoods that spills over into surrounding
areas point to a need for different approaches to rebuilding communities. Many communities
riddled with poverty require a comprehensive approach to address their needs, one that allows for
flexible funding and activities that cut across traditional DCA programs. Entering its fifth and
final year of funding in 2006, the Revitalization Strategies program allows for a holistic approach
to community and economic development enabling local governments to address multiple needs
in high poverty areas. This category provides flexible multi- year funding to help alleviate
poverty and carry out a long- term, sustainable revitalization strategy in selected target
neighborhoods. The communities receiving funds for another year of activities in 2006 are
Brevard, Caldwell County, Elizabeth City, Hamlet, Hyde County, Roanoke Rapids, Sanford,
Whiteville, and Wilson.
Status: The Revitalization Strategies category includes housing and self- sufficiency counseling,
job training, and down payment assistance. Eligible communities must be located in a Tier 1 or
Tier 2 County or a State Development Zone.
DCA will conduct a round table with leaders from across the state in business and economic
development to explore ways that CDBG funds can best be used to promote small business
development as a way to move low- wage and dislocated workers into greater self- sufficiency and
out of poverty.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 26
Submitted to US HUD on March 28, 2007
Status: DCA conducted three roundtable sessions – one each in September, October, and
November 2006 – where community and economic development leaders provided input for
design of the new 2007 Small Business and Entrepreneurial Assistance Grant Program.
North Carolina Housing Finance Agency
The Agency will continue to finance supportive rental housing through the federal and state
housing tax credit programs and through the Rental Production Program.
Status: The Agency did utilize federal and state housing tax credit program and the Rental
Production program to provide housing for persons with disabilities; it did so in 2006 primarily
through the KEY program ( which is used in conjunction with RPP and LIHTC).
The Agency will broaden its IDA home ownership initiative to include providing matching funds
and second mortgages to IDA participants who will be purchasing homes. The program used to
serve households at 200% of poverty and below who were in NC Department of Labor’s IDA
program under the federal Assets for Independence Act ( AFIA); it will now serve households
participating in any home ownership IDA program in North Carolina.
Status: The Agency continued these activities in the IDA program. In 2006, the Agency set aside
$ 175,000 matching funds for households served under the AFIA, and set aside $ 1.5 million for
gap financing.
The Agency will continue funding developments that are connected to public housing authorities’
Family Self- Sufficiency Programs through both rental and home ownership programs.
Status: The Agency continued this activity in 2006.
The Agency will continue funding transitional and permanent housing for the homeless and
nonhomeless persons with special needs through the Supportive Housing Development Program.
Status: The Agency awarded over $ 6.1 million dollars in 2006 to fund 291 units of supportive
housing for persons with special needs.
The Agency will provide funds to support a homeless policy specialist in the Office of the
Secretary of Health and Human Services who will work with the Interagency Council for the
Coordination of Homeless Programs.
Status: The Agency continued to fund a homeless policy specialist in the Office of Secretary of
Health and Human Services in 2006.
The Agency will continue to operate its Home Saver Loan Program that incorporates a Job Loss
Feature to help borrowers who have become involuntarily unemployed to maintain their home.
Status: The Agency continued to operate the HSL program in 2006.
The Agency will be administering the Home Protection Pilot Program, funded in 2004 by a $ 1.75
million special allocation from the General Assembly and in 2005 by a $ 700,000 allocation. This
program will create a loan pool to help prevent foreclosures due to job loss in targeted counties.
It will also strengthen the housing counseling network.
Status: The General Assembly provided an additional $ 1,500,000 in 2006 to continue the
foreclosure prevention pilot program created to assist dislocated workers and offered in 27
counties. More than 250 families benefited from the legal protections provided by the program’s
temporary stay of foreclosure. Since 2004, the Agency has approved 179 loans and provided
$ 1,867,665 in assistance to dislocated worker households. The agency continues to work with 14
local housing counseling agencies to conduct outreach to laid- off homeowners. In the interest of
administering a program that meets the needs of its target group and to enable the program to
offer assistance to more dislocated workers, two major changes were made to the program in
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 27
Submitted to US HUD on March 28, 2007
2006: loans are no longer amortizing, but deferred, and to meet eligibility, dislocated workers can
either live or have worked in one of the designated counties.
Capacity Building and Technical Assistance Activities
Division of Community Assistance
The Division will continue to implement the Capacity Building ( CB)
program for nonprofit organizations. Grants of up to $ 75,000 will be
available to each organization. Nonprofit organizations that receive
capacity building funds are expected to develop projects and apply for
CDBG funding in partnership with their local governments within two years
of award.
Status: Three Capacity Building grants were awarded in 2006.
Technical Assistance funds for 2006 will concentrate on developing the professional skills and
capabilities of local community development grant administrators. DCA and the School of
Government at the University of North Carolina at Chapel Hill are assessing the current demand
for a professional certification program for administrators of CDBG grants. This program will
lead to a certificate of completion that assures local governments that the people they engage to
administer community development grants meet and maintain high professional standards of
knowledge, ethics, and competence.
Status: The Community Development Academy, an intensive training that provides technical
assistance to local administrators and non- profit agencies was held for forty local administrators
during the winter of 2006.
North Carolina Housing Finance Agency
The Agency’s Home Ownership Business Group will continue working with the Real Estate
Commission to provide continuing education classes for real estate professionals.
Status: During 2006, the Agency presented 13 classes that provided 4 hours of continuing
education hours to the attending real estate licensees.
The Agency will continue to provide monthly lender training sessions throughout the state to
educate mortgage professionals about the Agency’s 100%, below- market- rate loans, with and
without downpayment assistance.
Status: During 2006, the Agency presented monthly seminars to lenders throughout the state to
educate mortgage professionals about the Agency's financing programs, including downpayment
assistance.
The Agency’s Rental Investment Business Group has statewide responsibility for Contract
Administration of the U. S. Department of Housing and Urban Development’s Section 8 Project-based
Rental Assistance Program, which utilizes over 600 rental developments with over 21,000
housing units in North Carolina. The Agency has partnered with Quadel Consulting Corporation
to manage the contract administration duties. Rental development owners will receive ongoing
technical assistance on the U. S. Department of Housing and Urban Development Section 8
regulations.
Status: The Agency continued to partner with Quadel, who in 2006 administered nearly $ 100
million in Section 8 project- based assistance statewide.
The Agency’s Strategic Investment Business Group will continue to collaborate with the
Advanced Energy Corporation ( AEC) to train contractors and developers ( both nonprofit and for-profit)
in techniques of building high performance houses. This training focuses on the
interrelationships between house systems and the effective use of pressure diagnostics ( blower
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 28
Submitted to US HUD on March 28, 2007
doors, duct blasters, manometers, etc.). The Agency anticipates producing 200 more in 2006, all
of them sold with 2- year guarantees of comfort and very low heating and cooling costs.
Status: The Agency completed 242 homes during 2006 under this initiative in 2006, and
continues to collaborate with AEC to conduct these trainings.
The Agency will continue to administer its fair housing and service coordinator trainings in
conjunction with its rental investment programs. Designed for service coordinators, housing
managers, supportive service providers, and others who work with the elderly or special needs
residents, these workshops have covered topics that include aging, the basics of service
coordination, legal issues and housing, and planning community wellness programs.
Status: The Agency continued to provide this training as a part of its RPP Training and Tax-
Credit Training. In 2006, these trainings were offered 9 times at multiple locations statewide.
The Agency will continue to hold at least one rental development roundtable discussion each
summer.
Status: The Agency carried out this function.
The Agency will offer six trainings for tax- credit developers, and three trainings for developers
using the Rental Production Program.
Status: The Agency continued to hold these trainings at multiple locations around the state.
The Agency will continue to conduct a Housing Developers’ Workshop Forum at the Agency’s
annual Housing Forum. It will also offer sessions on several of its other programs, providing
insight, instruction, and technical assistance to the attendees participating in those programs.
Status: The Agency offered the Housing Developers’ Workshop at the 2006 Housing Forum, as
well as sessions concerning tax- credit compliance, fair housing, and affordable mortgage
programs.
The Agency will be administering the Home Protection Pilot Program, in which a special
appropriation of $ 700,000 by the General Assembly in 2005 will be used to strengthen housing
counseling in selected counties, in addition to providing for households to prevent foreclosure due
to job loss.
Status: During 2006, the Agency continued to implement the North Carolina Home Protection
Pilot Program and Loan Fund, which included providing technical assistance and support to
housing counseling organizations providing ancillary housing counseling services as part of the
pilot program. The Agency received an additional $ 1,500,000 in funding for the program while
the number of target counties remained at 27. Instrumental to the program’s success and integral
to the program’s expansion are the housing counseling and foreclosure prevention services
provided by local non- profit organizations. The Agency continued to provide support by
conducting not only technical trainings focusing on program implementation and administration,
but also coordinated several local and regional meetings in targeted counties introducing housing
counseling organizations to the network of agencies ( workforce development, employment
security, training and educational) providing services to dislocated workers to develop a plan of
action for marketing the pilot program and conducting outreach to dislocated workers.
The Agency will develop a construction to permanent loan in partnership with Rural
Development to increase affordable housing stock throughout the state.
Status: The Rural Opportunity Mortgage program now utilizes construction- to- permanent
financing.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 29
Submitted to US HUD on March 28, 2007
Office of Economic Opportunity
The Office will continue to provide staff to coordinate the annual conference on homelessness
sponsored by the Interagency Council for Coordinating Homeless Programs ( ICCHP). This
conference provides training and technical assistance to approximately 400 representatives of
homeless service providers across the state each year.
Status: In 2006, the Interagency Council for Coordinating Homeless Programs assumed
responsibility for the operation of the state’s annual conference on homelessness. The Homeless
Policy Specialist of the Department of Health and Human Services, who serves as staff to the
Council, was given the role of conference coordinator.
The Office will provide training to all new, approved applicants for Emergency Shelter Grants
( ESG) Program funding in the spring of 2006.
Status: OEO staff conducted a training session for 25 grantees on April 19, 2006 in Raleigh.
Topics covered included proper completion of the ESG application; and, program monitoring and
reporting requirements. Staff of the NC Housing Finance Agency provided the participants with
information regarding the Supportive Housing Development Program; and, staff from the Office
of the Controller, Department of Health and Human Services, discussed audit requirements and
provided training on completion of monthly ESG reimbursement requests.
The Office will continue to promote the coordination of housing repairs through local available
resources for families receiving services under the North Carolina Weatherization Assistance
Program and the Heating Air Repair and Replacement Program.
Status: Energy reduction services provided by the Weatherization Assistance and Heating and
Air Repair and Replacement Programs were coordinated in conjunction with housing
improvement funded by local Community Development Block Grant, HOME and Urgent Repair
projects.
The Office will continue to support housing coordination activities of the Community Services
Block Grant program recipients that serve as local Comprehensive Housing Development
Organizations.
Status: OEO funds were used by CHDOs to assist in the provision of case management and
support services to families receiving housing services.
AIDS Care Unit
The Unit will provide technical assistance workshops, planning meetings, and one- on- one
technical assistance to assist organizations with resource development, with compliance, and in
other program areas.
Status: ACU continues to provide technical assistance to agencies on an as- needed basis.
The Unit will use and implement tools— such as program questionnaires for documenting
information on statistics— to assist with improving communication with project sponsors, in order
to clarify reporting expectations.
Status: The Program questionnaire was revised in order to capture data for the new performance
measurement tool established by the Department of Housing and Urban Development.
The Unit will continue to utilize technical assistance from the Supportive Housing Collaborative
and from the HUD Project Officer to strengthen administration of North Carolinas HOPWA
program.
Status: In addition to technical assistance from the HUD Project Officer, we also received
technical assistance from AIDS Housing of Washington and Collaborative Solutions.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 30
Submitted to US HUD on March 28, 2007
Interagency Coordination and Collaboration
Division of Community Assistance
The Division will continue to work with other governmental and non- governmental groups such
as the North Carolina Department of Labor, the North Carolina Housing Finance Agency, and the
North Carolina IDA and Asset Building Collaborative to support and fund IDA and other savings
programs in the state.
Status: The Division continued strengthening interagency ties with various IDA programs. DCA
staff served on a committee of state agencies and non- profits to create a best practices manual for
IDA providers; and a staff member serves on the North Carolina IDA and Asset Building
Collaborative Advisory Board.
The Division will continue to engage other state agencies and federal allies in funding priority
projects in 21st Century Communities. The counties of Burke, Hyde, Montgomery, and Sampson
were selected in 2005 to be the third round of 21 st Century Communities, and will continue to
receive assistance in 2006.
Status: The Division continues to urge other state agencies and federal allies to fund priority
projects located in 21 st Century Communities. Burke, Hyde, Montgomery, and Sampson counties
were selected for the third round for the period 2005- 2007.
If needed, the Division is prepared to react to severe economic crises such as plant closures and
mass layoffs by coordinating economic recovery plans and implementing recovery activities.
Status: The Division is prepared to provide local communities with economic recovery plans in
the event of large plant closings and massive layoffs.
The Division will initiate a round table discussion in late 2006 to determine the best use of CDGB
funds for economic development in 2007.
Status: DCA conducted three roundtable sessions – one each in September, October, and
November 2006 – where community and economic development leaders provided input for
design of the new 2007 Small Business and Entrepreneurial Assistance Grant Program.
The Division will continue to serve on statewide housing policy boards such as the Housing
Coordination and Policy Council.
Status: The Division continues to serve on various housing boards.
The Division will continue to collaborate with state and local agencies such as the North Carolina
Redevelopment Center and local emergency management and housing agencies on disaster relief
projects as they arise.
Status: The Division continues to serve on various housing boards.
North Carolina Housing Finance Agency
The Agency will partner with Advanced Energy Corporation ( AEC) of Raleigh, North Carolina,
to train and assist local partners under two home ownership programs. AEC’s services will
include providing low- income homebuyers with two- year guarantees that their heating and
cooling costs with not exceed a very low, set level ( as low as $ 18/ month). This broadens the
windows of affordability and enhances marketing effectiveness.
Status: The Agency continued to partner with AEC to train and assist local partners.
The Agency will continue as a member of the Interagency Coordinating Council for Homeless
Programs ( ICCHP).
Status: The Agency continued to participate as a member, and it also continued its role in
collaboratively planning the ICCHP Annual Homeless Conference.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 31
Submitted to US HUD on March 28, 2007
The State will continue its collaborative relationship with the Department of Labor by providing
matching funds and second mortgages for participants in the Department of Labor’s IDA
program. It will also broaden its support of IDA programs by developing partnerships statewide
with other IDA programs.
Status: The Agency continues to collaborate with the Department of Labor by providing matching
funds and second mortgages in the IDA program.
The Agency will continue to operate the Lead Abatement Partnership Program, responding to
actual cases of lead- poisoned low- income children in owner- occupant situations. As cases are
referred by the Department of Environment and Natural Resources ( DENR), the Agency will
locate and contract with local rehabilitation organizations to oversee lead abatement and
comprehensive housing rehabilitation.
Status: The NC Department of Energy and Natural Resources in partnership with the Agency
received a Lead- Hazard grant. This grant will provide funds for the remediation of lead hazards
in owner- occupied single- family dwelling units throughout the state.
The Agency will continue to implement the Displacement Prevention Demonstration fund which
allows the Independent Living Program and the Lead Hazard Control Branch to assist households
facing displacement due to mobility limitations and lead paint poisoning, respectively.
Status: In 2006, $ 676,000 in awards were made to assist 94 households in the Displacement
Prevention Program.
The Agency’s executive director, A. Robert Kucab, is a board member for Homes4NC, a new
foundation created by the NC Realtors Association to support affordable housing initiatives.
Status: A. Robert Kucab continued to serve on the board of Homes4NC. In 2006, the foundation
donated over $ 60,000 to agencies across the state to assist low- to moderate- income families with
their housing needs.
Office of Economic Opportunity
The Office will continue as an active member of the Housing
Coordination and Policy Council.
Status: OEO is an active member of the Housing Coordination
and Policy Council.
The Office will coordinate with the N. C. Housing Finance
Agency to continue to promote the use of Urgent Repair program funds with weatherization
services being performed through the N. C. Weatherization Assistance Program.
Status: Weatherization Assistance Program contractors combined OEO funds with Urgent Repair
Program funds when possible to increase the benefits of both programs.
The Office will actively promote the coordination of local anti- poverty efforts of community
action agencies with local, state, and national housing programs.
Status: Community action agencies were encouraged to continue identifying opportunities for
collaboration with local, state and national housing programs, i. e., HOME, CDBG, public
housing, rural development and Section 8, etc.
AIDS Care Unit
The Unit will continue as an active participant on the Housing Coordination and Policy Council
as well as the Inter- agency Council on Coordinating Homeless Programs.
Status: ACU staff continued participating on the Housing Coordination and Policy Council and
attended quarterly meetings of the Inter- agency Council on Coordinating Homeless Programs.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 32
Submitted to US HUD on March 28, 2007
The Unit will seek out opportunities to work with nonprofit organizations to provide services for
those who are triply diagnosed ( HIV/ AIDS, mental illness and substance abuse issues).
Status: ACU is in the early planning stages of implementing this objective using results from the
HOPWA needs assessment. ACU staff serves on the Department of Health and Human Services
Housing Workgroup collaborating with representatives from the mental health and substance
abuse programs.
The Unit will continue to collaborate with the other NC entitlement cities to ensure consistency
among administration of the HOPWA Program.
Status: ACU is collaborating with Wake County Human Services and the Regional HIV/ AIDS
Consortium which administers HOPWA Programs in their respective MSA’s.
Addressing Weaknesses in the Housing Delivery System
During the past five years, the participating agencies have used human, financial and programmatic
resources to increase available affordable housing stock for rent or purchase; fund community and
economic development projects that created jobs and stimulated revitalization; as well as opportunities for
business ownership; provide shelters and transitional housing; provide related services to homeless
families and individuals, persons with HIV/ AIDS and their families and other special needs populations.
Although every effort is made to improve the collective quality of life for the state’s most vulnerable
populations, budget constraints sometimes limit the scope and extent of existing programs and hinder
development and implementation of new ones. Each of the participating agencies has highlighted their
individual efforts to address weaknesses in the housing delivery system.
Division of Community Assistance
Among its strengths, the Division credits its highly motivated professional staff. Additionally, it
mentions the redesigned and new programs, which offer more local communities opportunities to
participate. The Division currently operates a Capacity Building program that tries to increase
nonprofit participation in the CDBG Program/ Process. The Division also considers its
sponsorship of Housing Development training for nonprofits as a strength because it helps to
increase their ability to develop better housing projects. Nevertheless, the current state budget
conditions limit state support for the agency’s administrative budget; this presents a weakness in
the Division’s ability to provide housing services. The Division continues to see training and
professional development for staff as an opportunity to improve the delivery of services in 2006.
Status: Several DCA staff have completed the state’s Certified Public Manager, CPM, program.
“ The purpose of the PMP is to provide an in- depth, comprehensive training program for middle
managers from state government agencies and university campuses. A graduate of the PMP is
designated a Certified Public Manager…” ( Excerpted from www. osp. state. nc. us/ trancata/ pmp. htm
< http:// www. osp. state. nc. us/ trancata/ pmp. htm>). Two DCA staff persons are currently enrolled in the
program.
DCA, in conjunction with the Institute of Government, University of North Carolina, Chapel Hill,
sponsored the fourth annual Community Development Academy on February 15- 17 and March
15- 17, 2006. 34 participants completed the program including sixteen from local government: 9
from the Small Cities program and 7 from entitlement jurisdictions; ten from the nonprofit sector
and 4 from consulting firms.
The academy is an intensive five day overview of the concept and application of community
development practices and the community development block grant program. The academy
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 33
Submitted to US HUD on March 28, 2007
offers hands on experience in and exposure to tools, policies and programs designed to strengthen
communities.
DCA also participated in a training session sponsored by the Council of State Community
Development Agencies, COSCDA.
North Carolina Housing Finance Agency
The Agency has private activity volume cap sufficient to meet its 2006 homeownership goals. It
offers a variety of loan products ( conventional, FHA, USDA, and VA) and has 90 and 150 day
interest rate guarantees. The Agency is currently serving only approximately 70% of the state’s
counties with its mortgage products, but intends to expand coverage by expanding third party
originations, continuing to offer lender incentives to increase loan production in unserved areas of
the state and offering a leveraged program in conjunction with USDA Rural Development. The
Agency will also increase income and sales price limits and down payment assistance.
Status: The Rural Opportunity Mortgage Program helped the HFA provide first- time home
mortgages in approximately eighty- seven percent ( 87%), of North Carolina’s 100 counties.
Income and sales price limits were approved by the HFA Board of Directors in 2006.
The Agency will continue to provide application workshops and housing development
workshops for organizations interested in developing supportive housing for
individuals with special needs.
Status: The Supportive Housing Development Program offered five regional
application and housing development workshops for organizations interested
in developing supportive housing for individuals with special needs in
addition to making presentations at five state and local conferences sponsored
by other housing related organizations. Staff also made over thirty
consultation/ technical assistance site visits with potential applicants and
partners, and participated in five community forums to gather consumer
input for the design of the Agency’s new Housing 400 Initiative and market the
initiative to potential developers of supportive housing.
.
One of the current weaknesses in the housing delivery system is an overtaxed housing counseling
delivery system. Another is the lack of financial assistance for households who unexpectedly
find themselves at risk of foreclosure. At the request of the General Assembly, the Agency is
administering the Home Protection Pilot Program. This program will provide loans to assist
homeowners in target regions who are at risk of foreclosure, and will strengthen the housing
counseling delivery system in those areas.
Status: The Agency continued to provide technical assistance and conduct workshops focused on
program implementation and administration to housing counseling organizations. This effort was
geared toward helping them train additions to the staff, assure growth in the knowledge of
existing staff, and implement new changes to the Program. The Agency received $ 100,000 in
2006- 2007 to assist with reverse mortgage counseling for senior citizens. The Agency also
facilitated new and follow- up introductions between current housing counseling professionals and
networks of agencies. These introductions included workforce development, employment
security, education and training services. The Agency continued to provide loans through the
Home Protection Pilot Program.
Office of Economic Opportunity
The current reality facing a homeless individual or family in North Carolina is a fragmented
system of various agencies and funding streams, each with their own points of access, eligibility
and available resources. This fragmentation hampers the efforts of government and nonprofit
agencies to improve homeless access to housing and mainstream health and human services.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 34
Submitted to US HUD on March 28, 2007
Following the state’s participation in federal Homeless Policy Academies in 2003 and 2004, the
NC Interagency Council for Coordinating Homeless Programs ( ICCHP) formulated a state plan to
end homelessness. This state- level action plan to end homelessness is seen as one way to ensure
that homeless people have a more efficient and coordinated system to assist and support them in
their efforts to transition from homelessness to stability.
Status: The ICCHP has used funds granted by the Office of Economic Opportunity to provide
technical assistance to communities across the state expressing an interest in developing a local
ten year plan to end homelessness. As of October 2006, mayors and/ or county executives from
twelve North Carolina communities have made commitments to developing local plans. These
communities include Asheville/ Buncombe, Chapel Hill/ Hillsborough/ Carrboro/ Orange,
Charlotte, Mecklenburg, Durham City/ Durham County, Fayetteville/ Cumberland,
Greensboro/ High Point/ Guilford, Raleigh/ Wake, Winston- Salem/ Forsyth, Gastonia, Henderson,
Shelby and Wilmington. ICCHP representatives provided these communities with technical
assistance in the development of their plans in 2006 and continue to work with communities that
have not yet made official planning commitments.
Nonprofit agencies and local governments providing shelter and services to homeless people in
the state have found it increasingly difficult to secure the funding needed to produce affordable
housing for extremely low- income citizens; maintain existing homeless shelters; and to improve
or, in some cases, establish homeless access to needed services. In the last two years, nonprofit
organizations operating shelters and providing services for homeless persons have seen dramatic
drops in donations from individuals, charitable organizations and local governments. At the same
time, they have reported significant increases in the number of homeless individuals and families
seeking shelter and services. The only program administered by the State specific to homeless
persons ( and the only one funding supportive services and operating costs for homeless shelters)
is the federally- funded Emergency Shelter Grants ( ESG) Program, administered by the Office of
Economic Opportunity.
Status: The Emergency Shelter Grants Program continues to be the only program specifically
used to assist in the operation of homeless shelters. OEO continues to receive more and more
inquiries regarding the ESG Program from interested organizations and units of local government
operating facilities for the homeless. Additionally, ESG program grantees continue to report
declining revenues and increased demand for their services.
In 2006, efforts have been made to maximize mainstream benefits for homeless people, increase
the number of permanent affordable housing units available and make the best use of existing
affordable housing for homeless persons.
In FY 2006 North Carolina was chosen to participate in the Federal Policy Academy’s SSI/ SSDI
Access and Recovery ( SOAR) Initiative. In September, four representatives of the state’s
Interagency Council for Coordinating Homeless Programs ( ICCHP) are now able to train
caseworkers in communities across the state on how to facilitate timely SSI/ SSDI approvals for
homeless persons who are eligible. Caseworker training began in January of 2007.
The Key Program, a creative partnership between ICCHP member agencies, the NC Housing
Finance Agency and the Department of Health and Human Services, is one initiative that has
been successful in meeting this need. Since FY 2003- 2004 the NC Housing Finance Agency has
required Low Income Housing Tax Credit Developments to include a 10% set aside targeting
households with disabilities at the SSI income level. The NC Housing Finance Agency and the
Department of Health and Human Services’ Division of Mental Health, Developmental
Disabilities and Substance Abuse Services combined resources to create an operating assistance
fund linked to those units. Since its inception the Key Program has created 947 housing units
targeted to people with disabilities at an SSI income level.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 35
Submitted to US HUD on March 28, 2007
In FY 2006- 07, the State budget expanded this effort by creating the 400 Initiative which will use
$ 10.9 million appropriated to the NC Housing Trust Fund to ensure financing of 400 supported
housing units. Another $ 1.2 million was appropriated to the Department of Health and Human
Services in operating subsidy funds.
To help the homeless and those who are at- risk of becoming homeless, the NC Housing Finance
Agency, with support from the Department of Health and Human Services and the Department of
Correction, has taken the lead agency role in creating NCHousingSearch. com. This online
housing search tool will allow persons seeking housing to identify available and affordable
housing units. The system will be used by agency staff to identify available units with landlords
who are willing to rent to special populations, including ex- offenders, persons who are HIV
positive, victims of domestic violence, or persons in recovery from substance abuse of mental
illness. The project went live in October of 2006.
In 2004 the ICCHP began facilitating a collaborative with a membership of homeless service
communities’ compliance with HUD mandates relating to Homeless Management Information
Systems ( HMIS). The HMIS system will begin active implementation by February 2005,
increasing our state’s chances of accessing available federal dollars for housing and services for
homeless person.
Status: In FY 2005 the ICCHP provided $ 200,000 to support HMIS costs and in the same year
North Carolina drew down over $ 15,000,000 in competitive federal funding for homeless
programs. In FY 2006 the ICCHP provided $ 134,000 to support HMIS costs and in that year
North Carolina drew down over $ 13,000,000 to support funding for homeless programs. The
Balance of State HMIS project, the Carolina Homeless Information Network ( CHIN) went live in
May of 2006. More than 100 agencies across the state have been trained and are beginning to
enter data into that system.
In 2004 the ICCHP provided intensive technical assistance to 12 counties that had never applied
for Continuum of Care federal dollars targeting the homeless population. During the next year the
ICCHP will extend that assistance, with an ultimate goal of accessing roughly $ 9 million dollars
in communities that had previously not applied for those available annual funds.
Status: The ICCHP has engaged in extensive technical assistance to communities applying for
federal monies to assist them in serving their homeless populations. For two years the Council has
implemented Peer- to- Peer Technical opportunities for approximately a dozen local Continuums
of Care. The ICCHP has also provided direct technical assistance to eight rural Continuums of
Care. As a result, North Carolina has accessed an average of almost 20% more in federal FY
2005 and FY 2005 than in FY 2003. In addition, the ICCHP facilitated the first Balance of State
Continuum of Care, a 61 county collaboration that assisted rural North Carolina communities in
applying for federal funds that had previously not been sought and, as a result, had been given to
other states. In FY 2006 North Carolina drew down over $ 13,000,000 in competitive federal
funding for homeless programs.
AIDS Care Unit
The Unit considers the experience of the HOPWA project sponsors to be a strength. However,
the 7% cap on administrative costs covered by HOPWA is unworkable and too low, making it
difficult for project sponsors to function without proper reimbursement for fulfilling increased
administrative responsibilities and attending much needed training. As a way to overcome
weaknesses in its housing delivery system the Unit’s review of internal processes recommended
advocating for an increase to the 7% administrative cap in 2007, as opportunities become
available.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 36
Submitted to US HUD on March 28, 2007
Status: HUD HOPWA regulations have a seven percent ( 7%) administrative cap for all eligible
activities.
Legislative Initiatives
Division of Community Assistance
The Department of Commerce will advocate for stronger tools to attract investment, jobs and
economic vitality to urban core areas. To this end, DCA is working with the state Economic
Development Committee to define and help locate potential development hubs throughout the
state and produce new strategies that will create regional economic influence radiating from the
newly created hubs.
Status: DCA created economic incentives packages increasing the amount of private investment
and jobs in metropolitan areas.
The Division of Community Assistance will work to expand the Main Street program.
Status: The Main Street Program added four towns in 2006 – Clayton, Fuquay- Varina, Hickory
and Wake Forest, bringing the total designated since 1980 to 57. Additionally the Small Town
Main Street program added three communities – Ayden, Fairmont and Mount Giliad and their
total designated is now 10. The 2006- 2007 state budget included funds for a new position, Small
Town Main Street Coordinator for Western NC.
In light of current and possible future cuts to federal spending for the CDBG program, DCA will
educate legislators to the need for state financial support for community development initiatives
in rural parts of North Carolina.
Status: DCA staff took advantage of several opportunities, to educate legislators about the need
for state financial support for community development initiatives in rural parts of North Carolina.
North Carolina Housing Finance Agency
The Agency plans to work to pass legislation to allow the same first- time homebuyer definition
for all programs.
Status: There was not an opportunity to pursue this issue in 2006.
The Agency plans to work to increase appropriations to the Housing Trust Fund and federal
HOME Program match.
Status: Agency staff and partners continued its efforts to increase appropriations to the Housing
Trust Fund and federal HOME Program match by communicating with the General Assembly
and Governors’ Office.
One of the Agency’s legislative initiatives is to develop and administer the Home Protection Pilot
Program. This program, allocated special funding from the General Assembly, will strengthen
housing counseling in selected counties and create a loan pool to help prevent foreclosures due to
job loss.
Status: The Agency continued to implement the Home Protection Pilot Program. In partnership
with the North Carolina Justice Center and the North Carolina Housing Coalition, the Agency
provided testimony to members of the General Assembly regarding the program's effectiveness,
around the issue of foreclosures, and about the role of housing counseling. The Agency plans to
request an additional funding allocation during the upcoming session of the North Carolina
General Assembly.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 37
Submitted to US HUD on March 28, 2007
Efforts to Reduce Lead- Based Paint Hazards
Division of Community Assistance
DCA will continue to encourage local units of government to
be involved with lead- based paint removal programs.
Furthermore, DCA will encourage local governments to work
with agencies that are established primarily to mitigate lead-based
paint conditions and provide for its removal, as well as
address other environmental concerns.
Status: The division held three workshops for contractors
and rehabilitation specialists. One session focused on how to
integrate the lead based paint risk assessment into the work write- up process. Workshops on
lead- based paint issues were held at the Community Development Academy and at three scattered
site housing sessions.
North Carolina Housing Finance Agency
All HOME- funded programs will continue to be in compliance with new U. S. Department of
Housing and Urban Development lead regulations ( 25 CFR Part 35).
Status: The Agency continued to comply with the lead regulations set forth by 25 CFR Part 35.
The Agency will continue to participate in a quarterly, ad hoc lead hazards advisory group made
up of concerned individuals from the Public Health, Environmental Protection, Affordable
Housing, and Occupational Safety sectors.
Status: Agency staff members continue to attend these quarterly meetings.
The Agency will continue to operate the established Lead Abatement Partnership Program ( LAP)
using HOME funds. Under LAP, the Agency has offered assistance to low- income owner-occupants
with a lead poisoned child ( above 20 W g/ dL) for over six years. On average, about 6
cases are handled per year.
Status: The Agency continues to operate the Lead Abatement Partnership.
The Agency will continue to offer a new option under the LAP program. Using Housing Trust
Fund funding set- aside through the Urgent Repair Program under the “ Displacement Prevention
Demonstration”, the Agency will offer up to $ 5,000 per unit to LAP referrals whose situation
may be more appropriately handled through Department of Energy and Natural Resources’s
( DENR’s) Preventative Maintenance Program. Funds are provided as grants to the homeowners
to pay for cleanup and stabilization activities as prescribed by DENR’s regional lead specialists.
Status: Funds continue to be available for LAP referrals. An additional $ 675,000 was awarded
through the Displacement Prevention Program in 2006.
The Agency will continue to count households with an elevated blood lead level ( greater than
10 W g/ dL) as an eligible special needs household under the regular Urgent Repair Program ( URP).
All households that are URP beneficiaries must be special needs households. Local health
officials can refer such cases to local URP recipient organizations for assistance with Preventative
Maintenance Program activities.
Status: Households with Elevated Blood Level ( EBL) children between 10 and 20 mg/ dl are not
only eligible under URP; but specifically targeted under the Displacement Prevention Partnership.
$ 2.1 million was awarded through the URP program in 2006, and approximately $ 675,000 was
awarded through the DPP program.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 38
Submitted to US HUD on March 28, 2007
Office of Economic Opportunity
Lead safe weatherization training will be provided to subrecipient staff and subcontractors of
the N. C. Weatherization Assistance Program to ensure the proper handling of situations
involving lead hazards in dwellings receiving services.
Status: Training on lead- safe work practices continues to be provided to crew members and
contractors that perform work for the Weatherization Assistance Program.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 39
Submitted to US HUD on March 28, 2007
2006 CDBG PERFORMANCE REPORT
Note: The Division of Community Assistance is finalizing completion of data for 2006 accomplishments
received from CDBG grantees. The following is the listing of accomplishments based on to- date
information.
In 2006, much of the Community Development Block Grant program focused on two goals outlined in
the Commerce Department’s strategic plan: Building Stronger Communities and Creating Jobs through
Sustainable Economic Development. State resources were focused on stimulating development in rural
communities and some urban areas, which have not experienced positive growth. The following is an
assessment of strategic actions undertaken during the reporting period to address the state’s community
development priorities.
• The Division of Community Assistance ( DCA) and its partner the Commerce Finance Center
( CFC) continued to create jobs through sustainable economic development targeted to low- to-moderate
income residents through a variety of programs.
• DCA continued to address persistent poverty in rural communities and parts of urban areas of the
state by putting emphasis on Tier 1 and Tier 2 Communities, local governments with State
Development Zones or Urban Progress and State Agrarian Zones, and the 21 st Century
Communities Initiative.
• DCA continued high levels of funding in its core programs of Scattered Site Housing and
Concentrated Needs, both of which greatly improve the physical living conditions of our state’s
poorest residents.
• DCA continued to advance the Governor’s Growth policies by incorporating sustainable
development principles and policies into criteria for CDBG funding for Housing Development
and other categories.
CDBG Grants were awarded in the following categories in 2006: Community Revitalization ( includes
Concentrated Needs and Revitalization Strategies), Scattered Site Housing, Infrastructure, Housing
Development, Economic Development, Capacity Building, Individual Development Account, and Urgent
Needs/ Contingencies. The following is a summary of the accomplishments by local governments made in
2006 and the number of grants awarded in 2006.
Scattered Site Housing ( SSH)
The Scattered Site Housing category enables local governments to address the most critical housing needs
of very low- income families throughout a county. Funds may be used for the following housing
activities: rehabilitation, relocation, and clearance.
Accomplishments: Scattered Site Housing funds were distributed to communities in North Carolina,
providing 186 LMI households with safe, decent, sanitary housing either through rehabilitation or
relocation. In addition, 89 dilapidated homes were either cleared or improved through code enforcement
measures, removing slum and blight from those neighborhoods.
Awards: Thirty- two ( 32) Scattered Site grants were awarded in the 2006 program year. It is proposed that
285 households will either have their residential units rehabilitated or will be relocated to better housing.
Community Revitalization
The Community Revitalization category provides grants to local governments to strengthen
neighborhoods and rehabilitate homes of low- to moderate- income citizens. Awards are made on a
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 40
Submitted to US HUD on March 28, 2007
competitive basis. In 2006, Community Revitalization grants were made in two sub- categories:
Concentrated Needs and Revitalization Strategies.
The Concentrated Needs ( CN) sub- category helps local governments address specific areas with
concentrated needs ( six or more homes in a geographical area). Funds may be used for housing activities
( rehabilitation, relocation, acquisition, clearance, and disposition), water and/ or sewer installation or
replacement, construction or upgrading of streets and drainage improvements. In 2006, communities
were given greater flexibility to undertake alternative activities, such as construction of public facilities or
housing counseling.
Accomplishments: Concentrated Needs funds were distributed to communities in North Carolina,
providing approximately 134 households with safe, decent, and sanitary housing primarily through
rehabilitation or relocation. In addition, 31,660 linear feet of new water or sewer lines were placed to
connect these households to safe, clean drinking water and/ or provide access to new public sanitary sewer
lines. In addition, 84 dilapidated houses were cleared removing slum and blighting conditions from those
neighborhoods.
Awards: DCA awarded seventeen Concentrated Need grants in 2006. The selected local governments
plan to provide services to 156 households, either rehabilitating or relocating the housing stock. In
addition, the local governments plan to provide 54,278 linear feet of public water or sewer lines, and/ or
streets and drainage facilities.
The Revitalization Strategies ( RS) sub- category allows communities to address poverty in a more
comprehensive manner and over a longer period of time than the Concentrated Needs Program. Eligible
activities include any activities in the other state grant categories as well as activities eligible under HUD
federal guidelines.
Accomplishments: In 2006, the nine remaining Revitalization Strategies grantees received funds to
improve communities throughout the state. Through this program, fifteen households were provided safe,
decent, and sanitary housing through rehabilitation or relocation. In addition, 2,060 residents of these
target communities are benefiting from the construction of neighborhood facilities or services such as a
community center, employment incubator, down payment assistance or job training, and/ or some other
beneficial projects in low- to- moderate income areas. In addition, 1,595 linear feet of new sanitary sewer
line was placed to connect households to provide sanitary waste disposal to seven households
Awards: In 2006, DCA continued to fund nine of the ten communities selected to receive RS grants in
2002. The remaining nine communities received $ 350,000 each for their 5th year of funding. This year,
the selected local governments will improve the housing and suitable living conditions of 45 households
through housing activities, physical infrastructure, and/ or other public services such as job training down
payment assistance and financial literacy training, and building of community centers.
Housing Development ( HD)
The Housing Development grant category promotes new housing development for low- to- moderate
income ( LMI) persons by defraying some of the costs of renovating older buildings or building
subdivisions. Eligible uses of CDBG funds include installation of public infrastructure ( water, sewer
streets, sidewalks and drainage on a case by case basis), the removal of hazardous material, acquisition of
vacant land or vacant buildings by an eligible non- profit, and certain rehabilitation activities ( on a case by
case basis). The objective of the HD category is to support projects that create additional units of
affordable housing for LMI residents.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 41
Submitted to US HUD on March 28, 2007
Accomplishments: Housing Development funds were distributed to communities in North Carolina to
reduce the costs of new housing units for first- time homebuyer households.
Awards: There were seven ( 7) HD awards made in 2006. The awards will provide 44 single family
homes and 88 rental units.
Infrastructure ( IF)
The Infrastructure grant category enables local governments to provide new infrastructure ( public water
and/ or public sewer) to existing residential neighborhoods to correct problems that pose a severe health or
environmental risk or to improve existing infrastructure in existing residential neighborhoods. A sub-category,
Infrastructure Hook- Up, connects LMI households that would otherwise be unable to afford the
connection to existing water and/ or sewer lines ( not installed using CDBG funds).
Accomplishments: Infrastructure funds were distributed to communities in North Carolina. Projects in
this category installed 16,750 linear feet of new water and sanitary sewer lines. The Infrastructure Hook-
Up program provided hook- up for 144 LMI households.
Awards: In 2006, twelve ( 12) Infrastructure grants were made to local governments. Water and/ or sewer
lines will be installed to provide sanitary conditions to 451 existing housing units. Three ( 3)
Infrastructure Hook- Up grants were awarded to connect 144 LMI households to existing water or sewer
lines.
Economic Development ( ED)
Accomplishments: Administered by the Commerce Finance Center ( CFC), CDBG- ED grants provided
funding in 2006 to create or retain 1615 jobs, at least 974 of which were for low- to- moderate income
residents.
Awards: In 2006, the Commerce Finance Center awarded 27 Economic Development grants to local
governments who, working with private companies, will create or retain jobs for low- to- moderate income
residents in their communities.
Capacity Building ( CB)
The Capacity Building Grant Category is designed to encourage local governments to partner with an
eligible local non- profit in developing future community development projects. The local unit of
government serves as the grant applicant while the non- profit organization is the indirect recipient of
funds. Ultimately, the capacity building grant is expected to result in a future CDBG application.
Accomplishments: The Town of Mooresville, in conjunction with a local non- profit, submitted a
Housing Development application in 2006 due in large part to the increased capacity created through the
Capacity Building grant.
Awards: In 2006, DCA awarded capacity building funds to three communities.
Individual Development Account ( IDA)
The IDA Program is designed to help local governments establish an IDA program in their community by
promoting first- time home ownership. CDBG monies will match a participant’s ( enrolled in the local
IDA program) savings dollar for dollar, up to a thousand dollars to be used for either down payment
assistance or closing costs, as well as assist non- profits or local governments provide financial literacy
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 42
Submitted to US HUD on March 28, 2007
training, homebuyer education, housing counseling, and credit counseling to LMI residents seeking to
purchase their first home.
Accomplishments: There are ten ( 10) existing IDA grantees. They provided financial literacy and
homeowner education, as well as down payment assistance, to 25 households that were able to purchase a
home for the first time as a result of CDBG funds in combination with participants’ savings and local
matching funds.
Awards: Three new IDA grants were awarded in 2006 ( Davie County, Person County, and Vance
County). It is proposed that 70 LMI households will purchase their first home through these programs.
Urgent Needs ( UN)
Accomplishments: Urgent Needs funds provide households with safe, decent, sanitary housing either
through rehabilitation or relocation. In addition, the program provides access to safe drinking water
through the installation of new water lines in drought ravaged areas of the state.
Awards: There were no Urgent Needs projects funded in North Carolina in 2006.
Technical Assistance
In 2006, technical assistance priorities included: 1) increased technical assistance to local governments
and their agents that furthers the goals and priorities of the CDBG program, 2) technical assistance to
developing community development corporations, and 3) increased support for workshops, seminars, and
training for grantees and staff.
During the 2006 program year division staff presented at various workshops, conferences and other
training opportunities in order to further reach out to community development professionals and provide
technical assistance as often as necessary. In addition to one- on- one consultation with local governments,
councils of government, and consultants, DCA staff members provided technical assistance to a number
of non- profit and local government advocacy groups including the North Carolina Community
Development Association, the School of Government at the University of North Carolina at Chapel Hill,
North Carolina Community Action Agencies, the North Carolina League of Municipalities, and the North
Carolina Housing Coalition.
DCA continued its annual CDBG training academy in 2006, as part of the Community Development
Academy offered by the School of Government at the University of North Carolina at Chapel Hill. The
purpose of this academy is to train community development professionals in best practices and to make
them aware of all possible resources at their disposal as they attempt to better the living conditions and
economic opportunity of their residents. One aspect of this training is the instruction by DCA staff on
proper administration and development of CDBG grant programs. It is expected that the Community
Development Academy will continue to provide instruction and technical assistance in 2006.
DCA held CDBG workshops throughout the year that were attended by over 400 participants. These
workshops covered topics such as implementation, financial management, environmental review and
release of funds, performance measures, rehabilitation, relocation, grant writing, CDBG 101, and category
specific application workshops for each program.
The Division held three workshops for contractors and rehabilitation specialists. One session of the
workshop focused on how they should integrate the lead based paint risk assessment into the work write-up
process. Another session focused on the overall DCA grant monitoring process to help ensure that all
grantee are aware of their responsibilities for CDBG grants. In addition, the Division’s Rehabilitation
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 43
Submitted to US HUD on March 28, 2007
Specialist also met with local contractors and rehabilitation specialists on various occasions to discuss a
number of lead- based paint issues. Lead based paint issues were also discussed during the Community
Development Academy, a joint effort between DCA and the School of Government at the University of
North Carolina at Chapel Hill.
Certification of Consistency
In 2006, DCA certified 55 public housing authorities and other agencies seeking HUD funds as identified
in the SuperNOFA.
Compliance with URA/ Actions Taken to Avoid Displacement
It is not the Division’s policy to encourage displacement of individuals. Local governments that utilize
voluntary relocation activities must follow all of the requirements of the Uniform Relocation Act.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 44
Submitted to US HUD on March 28, 2007
ESG PERFORMANCE REPORT
The North Carolina Emergency Shelter Grants ( ESG) Program is designed to improve the quality of
existing emergency shelters, to help meet the costs of operating emergency shelters and transitional
housing programs, and to provide essential services to homeless individuals and families with children so
that they may improve their situations. The ESG Program is also intended to restrict the increase of
homelessness through the provision of preventive programs and activities. The program is funded by the
U. S. Department of Housing and Urban Development ( HUD) and administered by the Office of
Economic Opportunity, N. C. Department of Health and Human Services. The State’s ESG program year
coincides with the State’s fiscal year ( July 1 – June 30).
Program Application Process
In early January of 2006, pre- applications for FY 2006 ESG funding were distributed to all FY 2005 ESG
grantees, all 100 county managers and other interested agencies, organizations and persons across the
State. Program staff reviewed these pre- applications to determine the eligibility of the applicants in
February of 2006. Eligible applicants included private, nonprofit organizations as described in section
501( c) of the Internal Revenue Code of 1988 and units of local government that met the following
criteria.
• Has operated the emergency and/ or transitional shelter facility for which funding is requested for at
least one year prior to the date of pre- application;
• Operates the emergency and/ or transitional facility for which funds are requested for a minimum of
six full months out of the year;
• Operates a safe and sanitary facility which:
- if a 24 hour or Night Only facility, has an average daily occupancy ( ADO) of at least six homeless
persons per night; or
- if a Day Only facility, has an APSD ( average number of persons served daily) of at least 30
persons per day; and, provides one or more of the essential services defined by the U. S. Department
of Housing and Urban Development.
• Has an established accounting system that provides for maintenance of ESG funds in accordance with
OMB Circulars A- 110 and A- 122;
• Has a voluntary board of directors of at least five members;
• Has the ability to expend ESG funds within 365 days;
• Has acceptable resources to match the ESG funding received;
• Involves, to the maximum extent practicable, homeless persons in maintaining and operating facilities
assisted under the ESG Program and in providing services for occupants for these facilities; and,
• In the case of a private, nonprofit organization, has the written endorsement for the operation of the
homeless facility for which funding is sought of the unit of local government in which the facility is
located. This endorsement must be signed by an authorized official of the unit of local government
( mayor, county/ city/ town manager, officer of the county board of commissioners), must specifically
state the name of the applicant organizations and the name of the facility for which funding is sought
and must be on official letterhead of the authorized official signing.
Eligible applicants were notified of their approved funding level and received full application packages in
late March of 2006. A training session on the ESG Program and the completion of the application
package was held for new ESG grantees and new staff of current grantees in mid- April of 2006. Program
staff reviewed submitted applications in May of 2006. Contracts with applicants whose applications were
approved were prepared, distributed for signature and finalized by June 30, 2006. The State’s FY 2006
ESG Program year began July 1, 2006.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 45
Submitted to US HUD on March 28, 2007
FY 2006 Program Funding
North Carolina’s FY 2006 ESG allocation totaled $ 2,495,801. Of this amount, $ 2,371,011 was made
available for distribution to 129 nonprofit organizations and three units of local government operating 140
facilities for the homeless in 53 counties of the state. The remaining $ 124,790 was used for program
administration as allowed by program regulations.
Funding amounts for individual approved grantees were determined by several factors including:
a. The total number of eligible program applicants
b. Th

State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 1
Submitted to US HUD on March 28, 2007
2006 North Carolina
Consolidated Annual Performance and
Evaluation Report
Participating Agencies:
North Carolina Department of Commerce, Division of Community Assistance
North Carolina Housing Finance Agency
North Carolina Department of Health and Human Services, Office of Economic
Opportunity
North Carolina Department of Health and Human Services, AIDS Care Unit
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 2
Submitted to US HUD on March 28, 2007
TABLE OF CONTENTS
Executive Summary .............................................................................................................................. 3
Summary of Housing Needs ........................................................................................................ 3
Table 1: North Carolina Housing Priorities Chart............................................................... 4
Summary of Resources .......................................................................................................................... 5
Table 2: Housing Resources by Funding Source and Administering Agency.................. 6
Distribution of Resources............................................................................................................. 8
Geographic Distribution of Resources ................................................................................................ 9
Map 1: 2006 Funding Distribution – All Programs ................................................... 9
Map 2: 2006 CDBG Funding Distribution .................................................................. 10
Map 3: 2006 HOME & ADDI Funding Distribution.................................................. 10
Map 4: 2006 ESG Funding Distribution ...................................................................... 11
Map 5: 2006 HOPWA Funding Distribution............................................................... 11
Households and Persons Assisted ......................................................................................................... 12
Racial and Ethnic Status of Households Assisted....................................................................... 12
Table 3: Racial and Ethnic Status of Households – CDBG & HOME Programs.............. .12
Table 4: Racial and Ethnic Status of Households – ESG & HOPWA Programs............... .12
Households Assisted According to Priority Need Category ....................................................... .1.3
Chart 1: HOME & ADDI Funding and Households Served in 2006.................................... .14
Summary Tables......................................................................................................................... .... 16
Table 5: Summary of Funding Distribution of the Four Core Programs............................. .16
Table 6: Federal Funding through the Four Core Programs – Housing Acquisition,
Rehabilitation, Production, and Related Infrastructure ..........................................................
18
Actions Taken To Meet Housing and Service Related Objectives.................................................. 20
Actions Taken To Affirmatively Further Fair Housing .................................................................... 23
Other Actions Indicated in the Action Plan.......................................................................................... 25
Support of Anti- Poverty Strategies ............................................................................................ 25
Capacity Building and Technical Assistance Activities ......................................................... 27
Interagency Coordination and Collaboration ........................................................................... 30
Addressing Weaknesses in the Housing Delivery System ..................................................... 32
Legislative Initiatives ................................................................................................................... 36
Efforts to Reduce Lead- Based Paint Hazards .......................................................................... 37
CDBG Performance Report ................................................................................................................. 39
ESG Performance Report ..................................................................................................................... 44
Table 7: Persons Served by North Carolina ESG Grantees 48
HOME Performance Report ................................................................................................................ 49
Table 8: HOME Production, Summed by Program................................................................ 50
Table 9: NCHFA HOME Production by Priority .................................................................... .51
Table 10: Inspections of HOME- funded Units by Project ................................................... .65
Attachment 1: HOME Annual Performance Report ................................................................ 72
Attachment 2: HOME Match Report ......................................................................................... .74
HOPWA Performance Report ............................................................................................................. 75
Attachment 3: HOPWA Performance Chart 1 - Actual Performance................................ 80
Attachment 4: HOPWA Performance Chart 2 – Comparison to Planned Actions ............. .81
Public Participants................................................................................................................... .............. 82
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 3
Submitted to US HUD on March 28, 2007
EXECUTIVE SUMMARY
The 2006 North Carolina Consolidated Annual Performance and Evaluation Report, CAPER,
summarizes the accomplishments of four North Carolina Agencies, each of whom receives a formula
grant from the United States Department of Housing and Urban Development ( HUD). The four agencies
are:
• North Carolina Department of Commerce, Division of Community Assistance;
• North Carolina Housing Finance Agency;
• North Carolina Department of Health and Human Services, Office of Economic Opportunity;
• North Carolina Department of Health and Human Services, AIDS Care Unit
These four agencies and their HUD- funded programs are working
together to meet three goals for the good of North Carolinians.
These three basic goals are:
• Provision of decent and affordable housing;
• Provision of a suitable living environment; and
• Expansion of economic opportunity.
Since 1999, the state has pursued a consolidated planning process
that addresses the major housing and community development
needs affecting North Carolina communities, determines priorities
for addressing those needs, and lays out a strategy for using the resources available. Pursuant to the
provisions of 24 CFR, Housing and Urban Development, Part 91, Performance Reports, the state has
prepared the 2006 NC CAPER on its progress in implementation of the 2006 Annual Action Plan and the
North Carolina Consolidated Action Plan, 2006- 2010.
The CAPER is based in part on the 2006 Consolidated Annual Action Plan and the North Carolina
Consolidated Action Plan, 2006- 2010. The four partnering entities received grants to provide housing
and housing- related services; community and economic development assistance; and supportive services
to low and moderate- income individuals and families; homeless individuals and families; and individuals
with HIV/ AIDS and their families. This document details the resources received and the programs used
to improve the lives, living conditions and education, employment and entrepreneurial opportunities for
North Carolina’s poorest citizens during the 2006 calendar year.
Summary of Housing Needs
Every five years, for the benefit of the U. S. Department of Housing and Urban Development, our
partnering agencies, and the public, the State prepares a five- year housing strategy outlining North
Carolina’s plans for meeting housing and community development needs. This cycle’s five- year strategy,
called the North Carolina Consolidated Plan 2006- 2010, lays out the priority needs for North Carolina,
which are based upon housing and population information captured from census data special tabulations,
which yield the incidence of certain housing problems ( overcrowding, inadequate plumbing facilities, cost
burden, etc.) among the population. The five- year plan also sets the framework from which each year’s
annual action plan can be drawn. The Annual Action Plan further details how the State will accomplish
its five- year goals during annual program cycles.
The needs listed below are those identified through the Consolidated Plan process through quantitative
data, qualitative data, and numerous public meetings with major stakeholders and citizens across the state.
Because the State cannot possibly meet all of the housing needs with its limited resources, when
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 4
Submitted to US HUD on March 28, 2007
determining those priority needs it also considered strategic investment and the appropriateness of
resources available to realistically meet the needs. Figure 1, the North Carolina Housing Priorities Chart,
details the state’s housing priorities based upon the Housing Market Analysis and Needs Assessment
performed as part of the 2006- 2010 Consolidated Plan.
Table 1, North Carolina Housing Priorities Chart
Homeless Persons Renters at 31- 50% Renters at 51- 80%
Operating Costs for Homeless Providers Financing of Rental Rehabilitation Financing of Rental Rehabilitation
Supportive Services Financing of New Construction Financing of New Construction
Emergency Shelter Construction and Rehabilitation Homeowners at 31- 50% Homebuyers at 30- 80% in areas where
Supportive Housing Comprehensive Rehabilitation needs are not met by the market
Non- Homeless Persons w/ Special Needs** Refinancing Individual Development Accounts
Rent Assistance First and Second Mortgages
Supportive housing Downpayment Assistance
Operating Assistance Financing of New Construction
Supportive Services Homeowners at 51- 80% where needs are
Renters at 0- 30% not met by market
Rent Assistance Comprehensive Rehabilitation
Homeless Prevention Refinancing
Financing of Rental Rehabilitation
Financing of New Construction
Homeowners at 0- 30%
Urgent Repair
Comprehensive Rehabilitation
Foreclosure Prevention Activities
Homeless Persons Renters at 51- 60% Renters at 61- 80%
Operating Costs for Homeless Providers Financing of Rental Rehabilitation Financing of new construction
Supportive Services Financing of New Construction Financing of rental rehabilitation
Emergency Shelter Construction and Rehabilitation Homeowners at 0- 50% Homebuyers at 30- 80% in areas where
Supportive Housing Comprehensive Rehabilitation needs are not met by market
Non- Homeless Persons w/ Special Needs** for the Non- elderly Individual Development Accounts
Rent Assistance Replacement Housing First and Second Mortgages
Supportive Housing Refinancing Downpayment Assistance
Operating Assistance Residential Water/ Sewer Infrastructure Financing of New Construction
Supportive Services Homeowners at 51- 80%
Renters at 0- 50% Comprehensive Rehabilitation
Rent Assistance Refinancing
Homeless Prevention Residential water/ sewer infrastructure
Financing of Rental Rehabilitation
Financing of New Construction
Homeowners at 0- 50%
Urgent Repair
Comprehensive Rehabilitation
Replacement Housing
Foreclosure Prevention Activities
Residential Water/ Sewer Infrastructure
( when danger to public health )
** Includes the following:
Persons with Disabilities
Low- income Elderly Persons
Persons with HIV/ AIDS
Rural
High Medium Low
Urban
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 5
Submitted to US HUD on March 28, 2007
SUMMARY OF RESOURCES
In 2006, the State assisted approximately 18,000 households through four core programs, which funded
the construction/ rehabilitation of housing units, and provided assistance for home- buyer initiatives, rental
assistance, and housing- related and homeless services. These four programs are:
The Small Cities Community Development Block Grant Program ( CDBG)
Funds help local governments improve deteriorating residential neighborhoods,
support public services, install water and sewer facilities for residential areas or
to job- creating industrial sites, and provide loans to large and small businesses.
The North Carolina Department of Commerce’s Division of Community Assistance
administers CDBG funds for community development activities, while funds for economic development
activities are administered by the North Carolina Commerce Finance Center. In 2006, North Carolina
received $ 45,196,659 for the state’s Small Cities CDBG program.
The HOME Investment Partnerships Program ( HOME)
Funds help local governments, nonprofit organizations, and developers build or improve affordable
housing and provide rental assistance and affordable second mortgages. HOME is administered by the
N. C. Housing Finance Agency. This year the N. C. Housing Finance Agency received $ 19,098,280 in
resources through the HOME program. The State’s General Assembly appropriated $ 1,750,945 in public,
nonfederal funds to match the federal HOME funds.
The American Dream Downpayment Initiative Program ( ADDI)
Funds help low- income first- time homebuyers to purchase affordable homes. ADDI is administered by
the N. C. Housing Finance Agency. The Agency received $ 338,860 in ADDI funds for Federal Fiscal
Year 2006.
The Emergency Shelter Grants Program ( ESG)
Funds help local governments and nonprofit organizations support emergency shelters and transitional
housing for the homeless, provide essential services, and prevent homelessness. ESG is administered by
the Office of Economic Opportunity in the N. C. Department of Health and Human Services. In 2006 the
State received $ 2,495,801 in resources through the ESG program.
Housing Opportunities for Persons With AIDS Program ( HOPWA)
Funds help local health departments, non- profit community based organizations, housing authorities,
AIDS service organizations and other interested provider agencies meet the housing needs of persons
living with AIDS or related diseases, and their families. The AIDS Care Unit in the Department of Health
and Human Services administers the HOPWA Program. This year the State received $ 2,097,000 in
resources through the HOPWA program.
These funds, along with other private and nonfederal resources, were available in 2006 to address
program goals, priority needs, and specific objectives described in the 2006 Annual Action Plan. The
table below, Housing Resources by Funding Source and Administering Agency, summarizes the resources
used in the state for affordable housing.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 6
Submitted to US HUD on March 28, 2007
Table 2, Housing Resources by Funding Source and Administering Agency
Name of Program Administering
Agency
Anticipated
Funding for
FY 06 ( in
$ 000s)
Actual
Funding for
FY 06 ( in
$ 000s)
Program
Directly
Administered?
Not administered directly, funds are
distributed to…
Federal Funds
CDBG ( 1) Small Cities
Community
Development Block
Grant Program
Division of
Community
Assistance
26,606 24,360 No Units of local government in non-entitlement
areas
HOME &
ADDI
Down Payment
Assistance Program
NCHFA 653 260 No Private mortgage lenders
HOME IDA Loan Pool
Program
NCHFA 777 1,560 No Nonprofit organizations and units of
local government
HOME New Homes Loan
Pool Program
NCHFA 2,849 5,088 No Nonprofit organizations and units of
local government
HOME Rural Opportunity
Mortgage Program ( 3)
NCHFA 5,179 13,302 No USDA
HOME Rental Production
Program
NCHFA 5,179 7,935 Yes
` HOME Rental Preservation
Loan Program ( 3)
NCHFA 2,590 5,750 Yes
HOME Self- Help Housing
Program
NCHFA 1,657 5,350 No Self- help housing organizations
HOME Single- Family
Rehabilitation
Program
NCHFA 4,143 6,900 No Units of local government, nonprofits
and regional agencies
HOME Supportive Housing
Development
Program
NCHFA 1,036 3,363 Yes
ESG*( 2) Emergency Shelter
Grants Program
Office of
Economic
Opportunity
2.425
FY 06- 07
2,495 No Nonprofit organizations and units of
local government
HOPWA* Housing
Opportunities for
Persons with AIDS
Program
AIDS Care
Unit
2,097 2,097 No HIV Care Consortia, nonprofit
organizations, adult day care
providers, family care homes, and
housing authorities
Nonfederal Public Resources ( State Funds)
HTF Rental Production
Program
NCHFA 4,500 4,515 Yes
HTF Supportive Housing
Development
Program
NCHFA 3,000 3,470 Yes
HOME
Match
Key Program
( TBRA in
partnership with
DHHS)
NCHFA 2,800 2,800 Yes
HPPP
Appropriation
Home Protection
Pilot Program
NCHFA 700
1,435 Yes
HTF and
Other Agency
Funds
Urgent Repair
Program
NCHFA 2,500 2,123 No Units of local government, nonprofits
and regional agencies
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 7
Submitted to US HUD on March 28, 2007
Other Sources
Housing Tax
Credits*( 4)
Federal and State
Housing Credits
NCHFA 149,940 149,940 Yes
Mortgage
Credit
Certificate*
Private Activity
Volume Cap
Allocation
NCHFA 100,000 100,000 No Private mortgage lending institutions
statewide
Mortgage
Revenue
Bonds*
Mortgage Loan
Program
NCHFA 237,500 195,000 No Private mortgage lending institutions
statewide
( 1) The CDBG funds in this table and this report are only those funds designated strictly for housing activities; CDBG funds used in the economic
development, infrastructure ( excluding hook- ups), urgent needs, and capacity building categories are not included. Total dollar amounts are also
exclusive of administration and technical assistance costs.
( 2) Must be used for shelter operations, client services and homeless prevention
( 3) Includes 4% bonds.
( 4) Figure is equity generated, not credits allocated.
* These programs have funding that must be used for a specific housing- related activity and/ or must be targeted for specific populations
( nondiscretionary funding). The other programs' funding may have income restrictions, but the types of housing activity and target population are
not restricted ( discretionary funding).
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 8
Submitted to US HUD on March 28, 2007
Distribution of Resources
Each of the four participating agencies that comprise the CAPER receives funds from the United States
Department of Housing and Urban Development. Following is a brief discussion of the distribution of
these resources for the 2006 program year.
Division of Community Assistance
Community Development Block Grant Program ( CDBG): Approximately $ 45 million was committed
to the Small Cities Community Development Block Grant program during 2006. Of that amount,
approximately $ 24 million was allocated statewide for direct housing purposes; twenty- five percent, 25%,
of these funds were awarded competitively and the remaining seventy- one percent, 71%, was distributed
on a non- competitive basis. The remaining $ 19 million was designated for capacity building, economic
development, infrastructure, administrative support, and other non- housing related activities.
North Carolina Housing Finance Agency
HOME Investment Partnerships Program ( HOME): In 2006, HFA invested HOME funds among four
main activities: approximately $ 23.8 million, or 64% of the funding, was invested in homebuyer
activities; approximately $ 9.7 million, or 27% of the funding, was invested in rental housing activities
( both production and preservation); $ 2.8 million, or 8% of the funding, was invested in rental assistance
for disabled populations; and approximately $ 245,000, or 1% of the funding, was invested in homeowner
rehabilitation activities. Although none of the supportive housing developments that had previously been
awarded HOME funds were completed during 2006 ( so this report shows zero HOME investment in
supportive housing), two supportive housing developments ( housing 15 people) funded with sources other
than HOME were completed during the year.
Office of Economic Opportunity
Emergency Shelter Grants: A total of $ 2,371,011 of the State’s FY 2006 ESG allocation, or ninety- five
percent, 95%, was awarded to 117 nonprofit organizations and three units of local government operating a
total of 132 shelters for the homeless in 50 counties. The remaining $ 124,790, or five percent, 5%, was
used for program administration. Eligibility for funding was determined through a pre- application
review. Applicants meeting all program criteria were notified of their approved funding level and given a
full application package. Grant agreements were executed in June and all program funds were disbursed.
AIDS Care Unit
Housing Opportunities for Persons with AIDS Program: The HOPWA program’s annual allocation
can be used over a period of three years from the date of receipt. $ 62,910, or three percent, 3%, was set
aside for grantee administration and $ 2,034,090, or ninety- seven percent, 97%, was awarded to 17 project
sponsors through a continuation application process. These providers include family care homes, adult
day/ health service centers, HIV Care Consortia, housing authorities and other nonprofit agencies that
provide housing and related services to persons living with HIV/ AIDS and their families.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 9
Submitted to US HUD on March 28, 2007
Geographic Distribution of Resources
Each of the four programs has unique methods of geographic distribution. Funding for the Community
Development Block Grant Program is directed to non- entitlement communities. Emergency Shelter
Grant, HOPWA and HOME funds are distributed statewide. For the HOPWA program, the home county
of the agency that received funds is shown on the map, even though that agency may serve multiple
counties. It is not possible at this time to report the amount of HOPWA funds spent in each county that a
multi- county agency serves. The following pages contain maps showing the actual distribution of funds
for the CDBG, HOME & ADDI, ESG, and HOPWA programs during 2006. Table 3, 2006 Funding
Distribution – All Programs, illustrates the amounts and locations of distributions.
Map 1, 2006 Total Funding Distribution – All Programs
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 10
Submitted to US HUD on March 28, 2007
Map 2, 2006 CDBG Funding Distribution
Map 3, 2006 HOME & ADDI Funding Distribution
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 11
Submitted to US HUD on March 28, 2007
Map 4, 2006 ESG Funding Distribution
Map 5, 2006 HOPWA Funding Distribution
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 12
Submitted to US HUD on March 28, 2007
HOUSEHOLDS AND PERSONS ASSISTED
Racial and Ethnic Status of Households Assisted
Table 3, Racial and Ethnic Status of Households – CDBG and HOME Funded Projects, and
Table 4, Racial and Ethnic Status of Households – ESG and HOPWA Funded Projects, indicate
the racial and ethnic groups of assisted households. Improved reporting methods have
minimized the number of households in the unknown category.
Table 3, Racial and Ethnic Status of Households – CDBG and HOME Funded Projects
Race/ Ethnic Group
Number
Assisted
Percentage
Assisted
American Indian/ Alaska Native 43 < 1%
Asian 5 < 1%
Black/ African American 9,455 68%
Native Hawaiian/ Other Pacific Islander 11 < 1%
White 4,237 30%
American Indian/ Alaska Native and
Black/ African American 15 < 1%
American Indian/ Alaskan Native & White 5 < 1%
Asian and White 0 < 1%
Black/ African American and White 41 < 1%
Other Multi- racial 132 2%
Unknown race 13 < 1%
CDBG & HOME Total 13,959 100%
Hispanic 1 78 10%
Nonhispanic 1 533 68.4%
Unknown ethnicity 1 168 21.6%
HOME Total* 779 100%
* Data on Hispanic and Nonhispanic persons were unavailable for the CDBG program. CDBG data includes both households
and persons assisted.
Table 4, Racial and Ethnic Status of Households – ESG and HOPWA Funded Projects
Percentage Assisted
Race/ Ethnic Group ESG HOPWA
Black/ African American 52% 77%
White 38% 20%
Asian 0.3% < 1%
Native American 0.5% 1%
Other 3.2% 1%
Hispanic 1 6% unknown
1 Hispanics are considered an ethnic group and not a race. Beginning in 2006, HUD did not require collection of
data for Hispanic populations. Data were unavailable for some programs.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 13
Submitted to US HUD on March 28, 2007
Households Assisted According to Priority Need Category
Division of Community Assistance
DCA provides assistance for individuals and families through six major categories:
• Community Revitalization: including Concentrated Needs and Revitalization Strategies;
• Scattered Site Housing;
• Infrastructure;
• Housing Development;
• Economic Development; and,
• Urgent Needs/ Contingencies.
DCA saw continued success of the CDBG program in assisting low- to- moderate income persons with
housing and infrastructure improvements. DCA provided direct housing assistance to 719 households in
2006. Encapsulating all of DCA’s programs to include infrastructure, urgent needs, and other community
development activities, a total of 8,825 households were provided assistance ranging from clean drinking
water, improved public services, financial literacy training to help lift them out of poverty, employment
possibilities that were non- existent prior to the business moving to where they lived, and access to
medical and dental care that was previously unobtainable.
The Scattered Site Housing program was able to target residents throughout the state and remain on target
for funding levels. The success of the Scattered Site program is most likely due to grantees fully
adjusting to the non- competitive, three- year cycle of the program. The first wave of Scattered Site grants
to be awarded under this format was funded in 2001, and the 2006 grantees began their second wave of
Scattered Site Housing grants through this distribution method. The success of this program indicates the
ability of local governments to plan forward for funding and act accordingly.
Actual accomplishments met goals laid out in the 2006 annual action plan in most categories. However,
due to the rising costs of construction, it remains difficult for DCA and its grantees to continue to provide
necessary services at past funding levels. The one category that did not perform at expected levels was
the Infrastructure Hook- Up category, which provides funds to assist low- to- moderate income
homeowners hook- up to existing water and/ or sewer lines. Demand for this category was down from
previous years, and for that reason both funding and households assisted were below expected levels.
North Carolina Housing Finance Agency
The NCHFA invests HOME and HOME Match funds in homebuyer assistance, rental production, rental
rehabilitation, rehabilitation of owner- occupied housing, development of supportive housing for persons
with disabilities and homeless people, and rental assistance for people with disabilities.
Overall, 17% of the Agency’s total 2006 HOME investment and 19% of the units were for high- priority
activity, 14% of the investment and 24% of the units were for medium- priority activity, and 69% of the
investment and 57% of the units were for low- priority activity.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 14
Submitted to US HUD on March 28, 2007
Chart 1, HOME & ADDI Funding and Households Served in 2006
HOME & ADDIT Funding ( in thousands) and Households
Assisted in 2 006, by Priority Category
6,324 293
5,088
377
25,130 909
0%
20%
40%
60%
80%
100%
Investment Households
High priority Medium priority Low priority
Table 6 compares projected 2006 investment and units to units placed in service during 2006 and their
investment. For HOME- funded programs, the projections for 2006 were one- fifth of the HOME
investment and HOME- financed units projected for the 5- year period covered by the 2006- 2010 Strategic
Consolidated Plan.
In the Supportive Housing Development Program, the Single Family Rehabilitation Program, and
the Preservation Loan Program the actual number of units placed in service in 2006 and their
investment was much less than one- fifth of the activity projected in the 2006- 2010 Strategic Consolidated
Plan. This difference can primarily be explained by the amount of time it takes a project to move from
the financing stage to the completion stage, often as long as two to three years; a project financed in 2004
may not be completed and placed in service until 2007. Under the Single Family Rehabilitation
program the Agency made no awards during 2003 and very few awards in 2004; the units placed in
service in 2006 were the first units of the 2004 and 2005 awards ( as would be expected, given the lag
between when awards are made and when construction on individual units is completed). The
Preservation Loan Pool program is a brand new program; the first awards were made in fall of 2005.
Because of the time it takes for construction to be completed, the Agency expects the first projects to be
completed during 2007. In addition to the development time between award and project completion, the
Supportive Housing Development Program also faces the problem of providing supportive services.
Few of the applicants to this program have the capacity to adhere to HUD regulations, resulting in fewer
HOME- funded Supportive Housing projects. Despite these difficulties, two developments ( not reported
in the CAPER tables because they were not funded with HOME) were placed in service in 2006,
providing 15 supportive housing units.
The Agency invested noticeably more in the Rental Production Program than 1/ 5 of the 5- year plan
forecasts. This is due to the variability in development time among projects, even projects awarded at the
same time. Certain years more HOME- funded projects are completed than were awarded 2 years prior,
and other years fewer are completed. The figures in this report are of HOME- funded projects completed
during 2006, not projects which were awarded HOME in 2006.
Overall the Agency invested more in homebuyer assistance programs than the forecasted 1/ 5 of the 5- year
plan figures. Less HOME was invested in the Downpayment Assistance Program ( the Agency’s
$ 7,000 subordinate financing program) than the Agency had forecasted; the Agency was forced to
decrease HOME funds for this program because of HUD’s stricter regulations regarding HOME for the
purchase of existing homes. This decision was made because of HUD’s requirement that HQS
inspections be carried out for all non- new homes assisted with HOME funds, which made using HOME
for downpayment assistance on existing construction infeasible. In contrast, the Rural Opportunities
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 15
Submitted to US HUD on March 28, 2007
Mortgage program, which is a first- mortgage program in which the Agency partners with USDA to assist
homebuyers in rural areas, produced more than 1/ 5 of the forecast in the 2006- 2010 Consolidated Plan.
The other homebuyer assistance program performed approximately as expected. Although all homebuyer
assistance activity is low priority according to the 2006- 2010 Strategic Consolidated Plan, the Agency is
pleased to be serving households with very modest incomes; the average household income in the units
funded with HOME in 2006 was approximately $ 28,000. The Agency has discovered, while HOME is
useful for funding homeownership, that it is very difficult to use HOME funds to serve the highest-priority
end of the housing spectrum; it is thankful to have state funding to serve these high- priority
populations.
Office of Economic Opportunity
Approximately 45,000 homeless families and individuals sought assistance from 132 homeless shelter
facilities in 50 counties. Eighty- six percent of FY 2006 ESG funding was used to pay operating expenses,
i. e., rent, utilities, supplies/ materials, equipment and administrative costs. Five percent ( 5%) of the
funding was used to provide essential services such as counseling, transportation, health care, housing
referral, employment and/ or education services. Four percent ( 4%) was used to provide homeless
prevention services that include short- term subsidies to defray rent and utility arrearages, security deposits
or first month’s rent payments. The remaining five percent of FY 2006 ESG funding was used for
program administrative costs incurred by the Office of Economic Opportunity.
AIDS Care Unit
The HOPWA Program assisted 2,662 persons living with HIV/ AIDS and their families through the
following programs:
• Tenant- based rental assistance program;
• Short- term rent mortgage and utility program;
• Supportive service;
• Resource identification;
• Housing information; and
• Adult day care facilities and family care homes.
The 2004 statewide HOPWA needs assessment indicated the need to increase permanent supportive
housing; consequently, short term rent, mortgage and utility payments decreased from 65% to 35% in FY
2006.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 16
Submitted to US HUD on March 28, 2007
Summary Tables
Table 5, Summary of Funding Distribution of the Four Core Programs, depicts how the state met its
priorities in comparison with the anticipated funding distribution contained in the 2006 Consolidated
Annual Action Plan. The state spent forty- four percent ( 44%) of its funding on high priority needs;
fourteen percent ( 13%) on medium priority needs; and forty- two percent ( 43%) on low priority needs.
Table 5, Summary of Funding Distribution of the Four Core Programs
High Priorities Medium Priorities Low Priorities
Amount Percent Amount Percent Amount Percent
Anticipated $ 32,922,000 59% $ 11,304,000 20% $ 12,066,000 21%
Actual $ 27,454,000 44% $ 8,387,000 13% $ 26,672,000 43%
Table 6, Federal Funding through the Core Programs – Housing Acquisition, Rehabilitation, Production
and Related Infrastructure, indicates how the four core programs were used. The table shows the funding
amounts ( in thousands of dollars) allocated for each priority need category ( low, medium, high) and
shows the number of households and individuals assisted. In reviewing the table, it is important to
recognize that the state considered strategic investment of its limited resources through its programs, as
well as the appropriateness of the resources available to address the priority need categories.
CDBG and HOME funds were used primarily to produce or rehabilitate housing, provide homebuyer
assistance, and develop infrastructure required for housing development. ESG funds were used to provide
shelter, essential services and homeless prevention activities to homeless individuals and households.
HOPWA funds were used to assist households and individuals with housing related services in both short
and long- term tenant- based rent assistance.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 17
Submitted to US HUD on March 28, 2007
Table 6 - Federal Funding through the Core Programs – Housing Acquisition,
Rehabilitation, Production, and Related Infrastructure – High Priority Needs
Priority Agency Funding
Source
Program Activity Anticipated
Funding in $ 000s
Actual Funding
in $ 000s
Anticipated
Households
Assisted
Actual Households
Assisted
High Priority Needs
DCA CDBG Housing Development Related Infrastructure $ 50 $ 0 3 0
NCHFA HOME Supportive Housing
Development Program*
New Construction $ 518 $ 0 26 0
OEO ESG ESG Support Funding for
Homeless Service
Providers**
$ 2,494 $ 2,496 6,000 households
and 30,000
individuals
4,463 households
and 30,578
individuals
DCA CDBG Concentrated Needs Rehabilitation,
Replacement
$ 651 $ 194 14 3
DCA CDBG Housing Development Related Infrastructure $ 162 $ 189 8 14
DCA CDBG Infrastructure Utility Hook- Up $ 85 $ 0 28 0
DCA CDBG Revitalization Strategies Rehabilitation,
Replacement
$ 110 $ 36 2 1
DCA CDBG Scattered Sites Rehabilitation,
Replacement
$ 1,128 $ 305 25 6
NCHFA HOME &
Match
Supportive Housing
Development Program*
New Construction $ 518 $ 0 26 0
ACU HOPWA HOPWA Rent Assistance*** $ 1,135 $ 1,280 1,419 1,735
ACU HOPWA HOPWA Housing- Related
Services****
$ 560 $ 817 3,000 117
DCA CDBG Concentrated Needs Rehabilitation,
Replacement
$ 1,627 $ 1,412 36 24
DCA CDBG Housing Development Related Infrastructure $ 495 $ 169 83 40
DCA CDBG Infrastructure Utility Hook- Up $ 212 $ 15 71 5
DCA CDBG Revitalization Strategies Rehabilitation,
Replacement
$ 275 $ 75 6 2
NCHFA HOME
Match
Preservation Loan Program Rehabilitation $ 1,295 $ 0 633 0
NCHFA HOME Rental Production Program New Construction,
Rehab*****
$ 2,020 $ 3,349 125 202
NCHFA HOME &
Match
Key Program Tenant Based Rental
Assistance******
$ 2,800 $ 2,800 125 85
DCA CDBG Concentrated Needs Rehabilitation,
Replacement
$ 1,953 $ 4,401 43 192
DCA CDBG Infrastructure Utility Hook- Up $ 255 $ 37 85 31
DCA CDBG Revitalization Strategies Rehabilitation,
Replacement
$ 6,430 $ 200 143 20
DCA CDBG Scattered Sites Rehabilitation,
Replacement, Urgent
Repair
$ 5,414 $ 9,504 120 275
NCHFA HOME &
Match
Single Family RehabProgram Rehabilitation $ 2,735 $ 175 68 6
Total High Priority $ 32,922 $ 27,454 6,089 2,758
** Funding to assist with operating costs of homeless shelters, provision of services to homeless clients and homeless prevention activities.
*** For HOPWA, " rent assistance" inlcudes short term rent, mortgage, and utility payments ( STRMU) as well as tenant- based rent assistance ( TBRA).
**** Includes housing information, resource identification, supportive services, and operating expenses for dedicated housing facilities.
****** These are the 2006 awards to be disbursed monthly over the next 10 years.
Assist Homeless Families and
Individuals
Assist Rural Renters Earning 0- 50% of
Median Family Income and Urban
Renters Earning 0- 30% of Median
Family Income
* Although NCHFA place 2 Supportive Housing projects into service in 2006, they were funded with sources other HOME.
Assist Rural Elderly Homeowners
Earning 0- 50% of Median Family
Income and Urban Homeowners
Earning 0- 30% of Median Family
Income
Assist Non- Homeless Persons with
Special Needs
***** A portion of these units will serve homeless households. The Agency has no way of forecasting how many of these households will be homeless.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 18
Submitted to US HUD on March 28, 2007
Table 6 ( Continued) - Federal Funding through the Core Programs – Housing Acquisition,
Rehabilitation, Production, and Related Infrastructure – Medium Priority Needs
Priority Agency Funding
Source
Program Activity Anticipated
Funding in $ 000s
Actual Funding
in $ 000s
Anticipated
Households
Assisted
Actual Households
Assisted
Medium Priority Needs
DCA CDBG Concentrated Needs Rehabilitation,
Replacement
$ 977 $ 149 22 2
DCA CDBG Housing Development Related Infrastructure $ 297 $ 0 50 0
DCA CDBG Infrastructure Utility Hook- Up $ 128 $ 0 43 0
DCA CDBG Revitalization Strategies Rehabilitation,
Replacement
$ 165 $ 0 4 0
NCHFA HOME
Match
Preservation Loan Program Rehabilitation $ 1,295 $ 0 633 0
NCHFA HOME Rental Production Program New Construction,
Rehabilitation
$ 2,331 $ 5,018 144 375
DCA CDBG Concentrated Needs Rehabilitation,
Replacement
$ 977 $ 1,284 22 33
DCA CDBG Infrastructure Utility Hook- Up $ 128 $ 90 43 38
DCA CDBG Revitalization Strategies Rehabilitation,
Replacement
$ 165 $ 222 4 4
DCA CDBG Scattered Sites Rehabilitation,
Replacement, Urgent
Repair
$ 3,722 $ 1,554 83 20
NCHFA HOME &
Match
Single Family RehabProgram Rehabilitation $ 1,119 $ 70 28 2
Total Medium Priority $ 11,304 $ 8,387 1,076 474
Assist Rural Non- Elderly Homeowners
Earning 0- 50% of Median Family
Income and Urban Homeowners
Earning 31- 50% of Median Family
Income
Assist Rural Renters Earning 51- 60%
of Median Family Income and Urban
Renters Earning 31- 50% of Median
Family Income
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 19
Submitted to US HUD on March 28, 2007
Table 6 ( Continued) - Federal Funding through the Core Programs – Housing Acquisition,
Rehabilitation, Production, and Related Infrastructure – Low Priority Needs
Priority Agency Funding
Source
Program Activity Anticipated
Funding in $ 000s
Actual Funding
in $ 000s
Anticipated
Households
Assisted
Actual Households
Assisted
Low Priority Needs
DCA CDBG Concentrated Needs Rehabilitation,
Replacement
$ 130 $ 299 3 5
DCA CDBG Housing Development Related Infrastructure $ 50 $ 0 8 0
DCA CDBG Infrastructure Utility Hook- Up $ 17 $ 0 6 0
DCA CDBG Revitalization Strategies Rehabilitation,
Replacement
$ 22 $ 0 1 0
NCHFA HOME Rental ProductionProgram New Construction,
Rehabilitation
$ 829 $ 1,319 51 131
DCA CDBG Concentrated Needs Rehabilitation,
Replacement
$ 195 $ 426 4 13
DCA CDBG Infrastructure Utility Hook- Up $ 26 $ 7 9 10
DCA CDBG Revitalization Strategies Rehabilitation,
Replacement
$ 33 $ 548 1 8
NCHFA HOME &
Match
Single Family Rehab Rehabilitation $ 290 $ 0 7 0
DCA CDBG Housing Development Related Infrastructure $ 567 $ 240 32 11
DCA CDBG Individual Development
Account
Downpayment
Assistance
$ 160 $ 22 80 22
NCHFA HOME &
ADDI
Downpayment Assistance
Program
Homebuyer
Assistance
$ 5,179 $ 455 104 68
NCHFA HOME IDA Loan Pool Homebuyer
Assistance
$ 653 $ 1,269 93 67
NCHFA HOME New Homes Loan Pool Homebuyer
Assistance
$ 777 $ 4,086 40 184
NCHFA HOME Rural Opportunities Mortgage
Program
Homebuyer
Assistance
$ 290 $ 13,451 7 273
NCHFA HOME Self Help Pool Homebuyer
Assistance
$ 2,849 $ 4,550 142 186
Total Low Priority $ 12,066 $ 26,672 588 978
TOTAL FEDERAL FUNDING $ 56,292 $ 62,513 7,753 4,210
Assist Rural Homeowners Earning 51-
80% of Median Family Income and
Urban Homeowners Earning 51- 80%
of Median Family Income where needs
are not met by the market
Assist Rural Renters Earning 61- 80%
of Median Family Income and Urban
Renters Earning 51- 80% of Median
Family Income
Assist Homebuyers Earning 30- 80% of
Median Family Income where needs
are not met by the market
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 20
Submitted to US HUD on March 28, 2007
ACTIONS TAKEN TO MEET HOUSING AND SERVICE RELATED
OBJECTIVES IN 2006
The 2006 North Carolina Consolidated Plan outlined housing and service- related objectives for each of
the participating agencies. Following is a list of those objectives for each agency, the actions taken
during the 2006 program year, and their status.
Division of Community Assistance
To target investments toward distressed rural areas and high
priority small cities through the Commerce Department’s
21st Century Communities Initiative, State Development
Zones, Tier 1 & Tier 2 counties, and support the EDA-funded
Comprehensive Economic Development Strategies
( CEDS).
Status: A third round of 21 st Century Communities was
announced in 2005 for the 2005– 2007 period. These latest
21 st Century Communities are Burke, Hyde, Montgomery,
and Sampson counties. Special emphasis was continued for round one and two 21 st Century
Communities, for which continuing need was deemed necessary, applying for CDBG program
funds. In the Infrastructure category, however, only those communities in the second round of
the 21 st Century Communities program and not funded in the Infrastructure category in 2005 were
eligible in 2006.
In support of this initiative, one half of the funds allocated for the Infrastructure Program in 2006
were set- aside for 21 st Century Communities. In addition, in the Economic Development
Category, additional per job funding was available for local governments participating the 21st
Century Communities program and for projects locating in State Development Zones or Urban
Progress and State Agrarian Zones.
Within the Housing Development category in 2006, preference was given for rental housing
developments that were: ( 1) within local governments from Tier 1 or Tier 2 counties, ( 2) projects
in State Development Zones or Urban Progress and State Agrarian Zones, which are consistent
with local strategies for improving the zone, and ( 3) local governments in 21 st Century counties.
The Revitalization Strategies category was continued in 2006. During its fifth year of funding in
2006, the Revitalization Strategies program allowed for a holistic approach to community and
economic development by enabling local governments to address multiple needs in high poverty
areas. This category provides flexible multi- year funding to help alleviate poverty and carry out a
long- term, sustainable revitalization strategy in selected target neighborhoods. Activities such as
housing and self- sufficiency counseling, job training, and downpayment assistance helped
residents of target areas pull themselves out of poverty. Revitalization Strategies communities
are required to be located in a Tier 1 or 2 county or a State Development Zone.
To support development of soundly designed affordable rental and single- family housing in
appropriate settings.
Status: In 2006, DCA continued to use smart growth guidelines in the Housing Development
Category. These guidelines are designed to stimulate high quality, sustainable development in
LMI neighborhoods throughout the state. The guidelines incorporate sound development
practices while balancing environmental protection with the economic needs of builders and
future homeowners. To receive housing development funds subdivisions had to meet the
following minimum requirements: ( 1) be connected to public water and sewer, ( 2) be located in
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 21
Submitted to US HUD on March 28, 2007
or near an existing community, ( 3) have streets that met NCDOT standards and connected to
public streets, ( 4) all cul- de- sacs had to be less than sixteen lots, ( 5) have a 30- foot buffer on each
side of all perennial streams, and ( 6) include some open space in the development.
To emphasize smart growth principles in CDBG program categories. Priority for funding will be
given to projects that demonstrate design excellence, infill development, and more intense use of
existing buildings in downtowns and nearby older neighborhoods.
Status: The Division continues to support proper new affordable rental and single- family housing
through its Housing Development category. This increase in the stock of sound affordable
housing improves the lives of hundreds of LMI residents across the state.
North Carolina Housing Finance Agency
To operate home ownership programs:
- Close 2,200 MRB loans and 250 MCC assisted loans
- Close 104 Rural Opportunity Mortgage ( ROM) loans in conjunction with USDA’s 502 direct
program.
- Close 142 loans under the New Homes Program, 83 loans under the Self- Help Housing
Program, and 40 loans under the IDA partnerships
- Rehabilitate 103 homes under the Single Family Rehab Program and 600 homes under the
Urgent Repair Program
Status: The Agency assisted 2,173 households through its MRB program and 44 households
through its MCC program in 2006. 273 households in rural areas were assisted through the ROM
program. The Agency financed 177 homes under the New Homes Loan Pool, 188 under the Self-
Help Loan Pool, and 80 under the IDA Program. The Agency provided nearly $ 7.9 million in
financing through the Single- Family Rehabilitation Program during the 2006 calendar to assist
approximately 185 homeowners. The Agency provided $ 2.1 million in financing to assist
approximately 635 homeowners under the Urgent Repair Program.
To operate rental production programs:
- Allocate the state's $ 15 million federal Housing Credit volume cap
- Loan $ 9.6 million under the Rental Production Program
- Continue the refundable state Housing Credit
- Finance 10 projects with the capacity to serve approximately 200 individuals under the
Supportive Housing Program
Status: The Agency awarded tax credits to provide $ 144 million in federal tax credit equity and
$ 26 million in investment from state tax credits, for projects that will assist 2,354 households.
The Agency awarded $ 10.8 million in Rental Production Program loans in 2006, to assist in the
production of 780 units. The Agency awarded $ 6.2 million to nonprofit service providers through
the Supportive Housing Development Program to help create 291 total units ( in 12 different
projects) of housing for individuals with special needs.
Office of Economic Opportunity
To ensure the provision of emergency and/ or transitional housing, essential services, and/ or
homeless prevention services to approximately 30,000 homeless individuals and 6,000 homeless
families. It is anticipated that over 100 nonprofit organizations and three units of local
government operating over 130 emergency and/ or transitional facilities in 50 to 55 of the state’s
100 counties will be funded in FY 2006.
Status: FY 2006 State ESG funding was distributed to 129 non- profit organizations and three
units of local government in 50 counties. These facilities provided shelter and/ or services to
approximately 31,000 homeless single individuals and 14,000 members of homeless families.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 22
Submitted to US HUD on March 28, 2007
To successfully coordinate the 2006 North Carolina Conference on Homelessness which will
provide opportunities for homeless service providers to receive training and technical assistance.
Status: The Interagency Council for Coordinating Homeless Programs ( ICCHP) assumed
responsibility for the operation of the state’s annual Conference on Homelessness in January of
2006. Due to scheduling conflicts, the Council decided not to have a conference in 2006, but to
schedule a conference for April of 2007.
To continue its involvement with the North Carolina Interagency Council for Coordinating
Homeless Programs ( ICCHP).
Status: In 2006 OEO continued its participation in activities of the ICCHP by serving as a
member agency of the Council.
To work with the ICCHP to implement strategies and policies outlined in the state’s ten- year plan
to end homelessness in North Carolina.
Status: As a member agency of the ICCHP, OEO provided input into the implementation of
strategies and policies developed by the Council.
AIDS Care Unit
To provide additional resources and research on funding opportunities for project sponsors
through regularly scheduled HOPWA planning meetings.
Status: The Housing Coordinator for the state presented at a HOPWA Project Sponsor meeting
and informed the projects of other housing programs and possible funding.
To review internal processes for making funding decisions and planning new initiatives.
Status: This activity is ongoing. FY 2006 funds were used to help rehabilitate a family care
home.
To hold training workshops on current trends in HIV housing.
Status: HOPWA Project sponsors attended a meeting on the new performance measurement tool
and how to utilize this tool.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 23
Submitted to US HUD on March 28, 2007
ACTIONS TAKEN TO AFFIRMATIVELY FURTHER FAIR HOUSING
Each of the four agencies undertook actions to further fair housing
Fair Housing Activities
The Division of Community Assistance contracted with the North Carolina Fair Housing Center to
analyze impediments to fair housing choice in North Carolina as part of the 2006- 2010 Consolidated
Plan. The four partnering agencies agree to promote fair housing, housing choice and equal opportunities
through the programs they administer.
Division of Community Assistance
The Division will continue to implement various strategies, chief of which is to increase local
activities that identify and reduce barriers to fair and affordable housing in all localities receiving
Community Development Block Grant Program funding.
Status: DCA continues to monitor grantees on compliance with fair housing laws and updated its
Analysis of Impediments to Fair Housing for 2006- 2010.
North Carolina Housing Finance Agency
The Agency will continue to ( 1) distribute its Elderly Housing Rights and
Consumer Protection Program information brochures, ( 2) provide Fair Housing
training in conjunction with its Housing Credit Program Compliance and
Service Coordinator workshops, and ( 3) publish Spanish translations of its
MRB and MCC Program information.
Status: The Agency continued all of these activities in 2006. The Agency has
continued to distribute its Elderly Housing Rights and Consumer Protection
Program information brochures through its partners including housing
counseling, legal services, area agencies on aging and advocate organizations
as well as individuals. HFA continued to provide Fair Housing training as a
part of its RPP Training and Tax- Credit Training, which were held nine times
in 2006. The Agency also continued to make available the Fair Housing for Tenants with
Disabilities: Understanding Reasonable Accommodations and Reasonable Modifications guide.
In 2006, NCHFA unveiled a Spanish language version of its website, on which translations of
MRB and MCC program brochures, as well as information about other Agency activities, were
made available to the Spanish- speaking population.
All developers of affordable rental housing financed by the Agency are required to develop and
implement Affirmative Fair Housing Marketing Plans, which are reviewed by the Agency for
effectiveness and proper implementation. Projects receiving HOME loans must certify that they
have developed and adopted affirmative marketing procedures for HOME- assisted housing
containing five or more units.
Status: The Agency successfully carried out this function.
The Agency will publicize the availability of its updated guide published in October 2005, Fair
Housing for Tenants with Disabilities: Understanding Reasonable Accommodations and
Reasonable Modifications. The Guide will also be included in the Agency’s annual training for
LIHTC rental property managers.
Status: The Agency continues to make this guide available on its website. In addition, our
partners in this effort, the NC Justice Center and NC Department of Health and Human Services,
have conducted a series of Fair Housing trainings across the state.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 24
Submitted to US HUD on March 28, 2007
The Agency will solicit voluntary agreements with two more lenders in 2006 to work together
with the Agency in ensuring that every first- time home buyer in North Carolina is informed about
the Agency’s loan programs during the loan application process.
Status: The Agency did not pursue any additional voluntary agreements with lenders in 2006, and
is not actively soliciting agreements at this time.
The Agency will process preliminary eligibility analysis to reach 250 prospective homebuyers in
unserved areas of the state. Renters will complete a worksheet and the Agency will assess the
renters’ eligibility for a mortgage and make a referral to a lender.
Status: The Agency processed 729 preliminary eligibility analysis requests in our effort to better
serve prospective homebuyers in unserved areas of the state. Renters completed a worksheet to
determine their readiness to become a homebuyer.
The Agency will work more closely with partners to educate homebuyers, increase the supply of
affordable housing, provide assistance with downpayment and closing costs and offer financial
options to support HUD’s “ Blueprint for the American Dream”.
Status: The Agency developed a continuing education course for loan officers in conjunction
with NC Banking Commission. The NC Association of Realtors created Homes4NC in 2004 to
promote safe, decent and affordable housing, and the Agency’s executive director continues to
serve on the board.
The Agency, in partnership with USDA- Rural Development, will offer 200 leveraged loans to
serve low- income households in rural North Carolina through its Rural Opportunity Mortgage
program.
Status: The Agency awarded nearly 13.5 million dollars in leveraged loans in 2006 to serve
approximately 270 low- income households.
The Agency chairs the Housing Coordination and Policy Council, which is pursuing an effort to
evaluate local zoning barriers to affordable housing.
Status: The Agency continued to chair the HCPC council, with discussion of policy concerns and
recommendations to the Governor. The HCPC chose not to pursue an evaluation of local zoning
barriers in 2006.
AIDS Care Unit
The Unit will continue to expand the Tenant Based Rental Assistance program, which is designed
to increase housing choice for low- income persons with AIDS and their families.
Status: ACU currently funds four agencies that exclusively provide tenant- based rental
assistance. A Fair Housing pamphlet, sample letter for reasonable accommodations and other fair
housing topics were discussed at the annual HOPWA Project Sponsors meeting.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 25
Submitted to US HUD on March 28, 2007
OTHER ACTIONS INDICATED IN THE 2006 ACTION PLAN
Each of the four state agencies undertook additional actions to further the housing and support services
goals of their organizations in the following areas:
• Anti- Poverty Strategies;
• Capacity Building and Technical Assistance;
• Coordination and Collaboration;
• Housing Delivery Systems;
• Legislative and Public Policy Initiatives; and
• Lead- Based Paint Hazard Reduction.
Following are the agencies’ 2006 Annual Action Plan objectives and status summaries.
Support of Anti- Poverty Strategies
Division of Community Assistance
DCA continues to utilize Small Cities Community Development
Block Grant Funds for use in establishing or continuing Individual
Development Account ( IDA) programs throughout the state. IDAs
are dedicated savings accounts that can only be used for
purchasing a first home, education or job training expenses, or
capitalizing a small business. In DCA’s program, funding is
exclusively for home ownership. Only residents that are members
of households below 80 percent of MHI are eligible to participate.
In partnership with local governments, IDAs are managed by community organizations and
accounts are held at local financial institutions. Participants are introduced into the mainstream
financial system, provided credit counseling and homebuyer and financial literacy, and receive
match money for down payment assistance upon successful completion of the program.
Status: DCA allocated funding from its housing development category for three new IDA
programs.
Continuing decline and disinvestment in many neighborhoods that spills over into surrounding
areas point to a need for different approaches to rebuilding communities. Many communities
riddled with poverty require a comprehensive approach to address their needs, one that allows for
flexible funding and activities that cut across traditional DCA programs. Entering its fifth and
final year of funding in 2006, the Revitalization Strategies program allows for a holistic approach
to community and economic development enabling local governments to address multiple needs
in high poverty areas. This category provides flexible multi- year funding to help alleviate
poverty and carry out a long- term, sustainable revitalization strategy in selected target
neighborhoods. The communities receiving funds for another year of activities in 2006 are
Brevard, Caldwell County, Elizabeth City, Hamlet, Hyde County, Roanoke Rapids, Sanford,
Whiteville, and Wilson.
Status: The Revitalization Strategies category includes housing and self- sufficiency counseling,
job training, and down payment assistance. Eligible communities must be located in a Tier 1 or
Tier 2 County or a State Development Zone.
DCA will conduct a round table with leaders from across the state in business and economic
development to explore ways that CDBG funds can best be used to promote small business
development as a way to move low- wage and dislocated workers into greater self- sufficiency and
out of poverty.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 26
Submitted to US HUD on March 28, 2007
Status: DCA conducted three roundtable sessions – one each in September, October, and
November 2006 – where community and economic development leaders provided input for
design of the new 2007 Small Business and Entrepreneurial Assistance Grant Program.
North Carolina Housing Finance Agency
The Agency will continue to finance supportive rental housing through the federal and state
housing tax credit programs and through the Rental Production Program.
Status: The Agency did utilize federal and state housing tax credit program and the Rental
Production program to provide housing for persons with disabilities; it did so in 2006 primarily
through the KEY program ( which is used in conjunction with RPP and LIHTC).
The Agency will broaden its IDA home ownership initiative to include providing matching funds
and second mortgages to IDA participants who will be purchasing homes. The program used to
serve households at 200% of poverty and below who were in NC Department of Labor’s IDA
program under the federal Assets for Independence Act ( AFIA); it will now serve households
participating in any home ownership IDA program in North Carolina.
Status: The Agency continued these activities in the IDA program. In 2006, the Agency set aside
$ 175,000 matching funds for households served under the AFIA, and set aside $ 1.5 million for
gap financing.
The Agency will continue funding developments that are connected to public housing authorities’
Family Self- Sufficiency Programs through both rental and home ownership programs.
Status: The Agency continued this activity in 2006.
The Agency will continue funding transitional and permanent housing for the homeless and
nonhomeless persons with special needs through the Supportive Housing Development Program.
Status: The Agency awarded over $ 6.1 million dollars in 2006 to fund 291 units of supportive
housing for persons with special needs.
The Agency will provide funds to support a homeless policy specialist in the Office of the
Secretary of Health and Human Services who will work with the Interagency Council for the
Coordination of Homeless Programs.
Status: The Agency continued to fund a homeless policy specialist in the Office of Secretary of
Health and Human Services in 2006.
The Agency will continue to operate its Home Saver Loan Program that incorporates a Job Loss
Feature to help borrowers who have become involuntarily unemployed to maintain their home.
Status: The Agency continued to operate the HSL program in 2006.
The Agency will be administering the Home Protection Pilot Program, funded in 2004 by a $ 1.75
million special allocation from the General Assembly and in 2005 by a $ 700,000 allocation. This
program will create a loan pool to help prevent foreclosures due to job loss in targeted counties.
It will also strengthen the housing counseling network.
Status: The General Assembly provided an additional $ 1,500,000 in 2006 to continue the
foreclosure prevention pilot program created to assist dislocated workers and offered in 27
counties. More than 250 families benefited from the legal protections provided by the program’s
temporary stay of foreclosure. Since 2004, the Agency has approved 179 loans and provided
$ 1,867,665 in assistance to dislocated worker households. The agency continues to work with 14
local housing counseling agencies to conduct outreach to laid- off homeowners. In the interest of
administering a program that meets the needs of its target group and to enable the program to
offer assistance to more dislocated workers, two major changes were made to the program in
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 27
Submitted to US HUD on March 28, 2007
2006: loans are no longer amortizing, but deferred, and to meet eligibility, dislocated workers can
either live or have worked in one of the designated counties.
Capacity Building and Technical Assistance Activities
Division of Community Assistance
The Division will continue to implement the Capacity Building ( CB)
program for nonprofit organizations. Grants of up to $ 75,000 will be
available to each organization. Nonprofit organizations that receive
capacity building funds are expected to develop projects and apply for
CDBG funding in partnership with their local governments within two years
of award.
Status: Three Capacity Building grants were awarded in 2006.
Technical Assistance funds for 2006 will concentrate on developing the professional skills and
capabilities of local community development grant administrators. DCA and the School of
Government at the University of North Carolina at Chapel Hill are assessing the current demand
for a professional certification program for administrators of CDBG grants. This program will
lead to a certificate of completion that assures local governments that the people they engage to
administer community development grants meet and maintain high professional standards of
knowledge, ethics, and competence.
Status: The Community Development Academy, an intensive training that provides technical
assistance to local administrators and non- profit agencies was held for forty local administrators
during the winter of 2006.
North Carolina Housing Finance Agency
The Agency’s Home Ownership Business Group will continue working with the Real Estate
Commission to provide continuing education classes for real estate professionals.
Status: During 2006, the Agency presented 13 classes that provided 4 hours of continuing
education hours to the attending real estate licensees.
The Agency will continue to provide monthly lender training sessions throughout the state to
educate mortgage professionals about the Agency’s 100%, below- market- rate loans, with and
without downpayment assistance.
Status: During 2006, the Agency presented monthly seminars to lenders throughout the state to
educate mortgage professionals about the Agency's financing programs, including downpayment
assistance.
The Agency’s Rental Investment Business Group has statewide responsibility for Contract
Administration of the U. S. Department of Housing and Urban Development’s Section 8 Project-based
Rental Assistance Program, which utilizes over 600 rental developments with over 21,000
housing units in North Carolina. The Agency has partnered with Quadel Consulting Corporation
to manage the contract administration duties. Rental development owners will receive ongoing
technical assistance on the U. S. Department of Housing and Urban Development Section 8
regulations.
Status: The Agency continued to partner with Quadel, who in 2006 administered nearly $ 100
million in Section 8 project- based assistance statewide.
The Agency’s Strategic Investment Business Group will continue to collaborate with the
Advanced Energy Corporation ( AEC) to train contractors and developers ( both nonprofit and for-profit)
in techniques of building high performance houses. This training focuses on the
interrelationships between house systems and the effective use of pressure diagnostics ( blower
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 28
Submitted to US HUD on March 28, 2007
doors, duct blasters, manometers, etc.). The Agency anticipates producing 200 more in 2006, all
of them sold with 2- year guarantees of comfort and very low heating and cooling costs.
Status: The Agency completed 242 homes during 2006 under this initiative in 2006, and
continues to collaborate with AEC to conduct these trainings.
The Agency will continue to administer its fair housing and service coordinator trainings in
conjunction with its rental investment programs. Designed for service coordinators, housing
managers, supportive service providers, and others who work with the elderly or special needs
residents, these workshops have covered topics that include aging, the basics of service
coordination, legal issues and housing, and planning community wellness programs.
Status: The Agency continued to provide this training as a part of its RPP Training and Tax-
Credit Training. In 2006, these trainings were offered 9 times at multiple locations statewide.
The Agency will continue to hold at least one rental development roundtable discussion each
summer.
Status: The Agency carried out this function.
The Agency will offer six trainings for tax- credit developers, and three trainings for developers
using the Rental Production Program.
Status: The Agency continued to hold these trainings at multiple locations around the state.
The Agency will continue to conduct a Housing Developers’ Workshop Forum at the Agency’s
annual Housing Forum. It will also offer sessions on several of its other programs, providing
insight, instruction, and technical assistance to the attendees participating in those programs.
Status: The Agency offered the Housing Developers’ Workshop at the 2006 Housing Forum, as
well as sessions concerning tax- credit compliance, fair housing, and affordable mortgage
programs.
The Agency will be administering the Home Protection Pilot Program, in which a special
appropriation of $ 700,000 by the General Assembly in 2005 will be used to strengthen housing
counseling in selected counties, in addition to providing for households to prevent foreclosure due
to job loss.
Status: During 2006, the Agency continued to implement the North Carolina Home Protection
Pilot Program and Loan Fund, which included providing technical assistance and support to
housing counseling organizations providing ancillary housing counseling services as part of the
pilot program. The Agency received an additional $ 1,500,000 in funding for the program while
the number of target counties remained at 27. Instrumental to the program’s success and integral
to the program’s expansion are the housing counseling and foreclosure prevention services
provided by local non- profit organizations. The Agency continued to provide support by
conducting not only technical trainings focusing on program implementation and administration,
but also coordinated several local and regional meetings in targeted counties introducing housing
counseling organizations to the network of agencies ( workforce development, employment
security, training and educational) providing services to dislocated workers to develop a plan of
action for marketing the pilot program and conducting outreach to dislocated workers.
The Agency will develop a construction to permanent loan in partnership with Rural
Development to increase affordable housing stock throughout the state.
Status: The Rural Opportunity Mortgage program now utilizes construction- to- permanent
financing.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 29
Submitted to US HUD on March 28, 2007
Office of Economic Opportunity
The Office will continue to provide staff to coordinate the annual conference on homelessness
sponsored by the Interagency Council for Coordinating Homeless Programs ( ICCHP). This
conference provides training and technical assistance to approximately 400 representatives of
homeless service providers across the state each year.
Status: In 2006, the Interagency Council for Coordinating Homeless Programs assumed
responsibility for the operation of the state’s annual conference on homelessness. The Homeless
Policy Specialist of the Department of Health and Human Services, who serves as staff to the
Council, was given the role of conference coordinator.
The Office will provide training to all new, approved applicants for Emergency Shelter Grants
( ESG) Program funding in the spring of 2006.
Status: OEO staff conducted a training session for 25 grantees on April 19, 2006 in Raleigh.
Topics covered included proper completion of the ESG application; and, program monitoring and
reporting requirements. Staff of the NC Housing Finance Agency provided the participants with
information regarding the Supportive Housing Development Program; and, staff from the Office
of the Controller, Department of Health and Human Services, discussed audit requirements and
provided training on completion of monthly ESG reimbursement requests.
The Office will continue to promote the coordination of housing repairs through local available
resources for families receiving services under the North Carolina Weatherization Assistance
Program and the Heating Air Repair and Replacement Program.
Status: Energy reduction services provided by the Weatherization Assistance and Heating and
Air Repair and Replacement Programs were coordinated in conjunction with housing
improvement funded by local Community Development Block Grant, HOME and Urgent Repair
projects.
The Office will continue to support housing coordination activities of the Community Services
Block Grant program recipients that serve as local Comprehensive Housing Development
Organizations.
Status: OEO funds were used by CHDOs to assist in the provision of case management and
support services to families receiving housing services.
AIDS Care Unit
The Unit will provide technical assistance workshops, planning meetings, and one- on- one
technical assistance to assist organizations with resource development, with compliance, and in
other program areas.
Status: ACU continues to provide technical assistance to agencies on an as- needed basis.
The Unit will use and implement tools— such as program questionnaires for documenting
information on statistics— to assist with improving communication with project sponsors, in order
to clarify reporting expectations.
Status: The Program questionnaire was revised in order to capture data for the new performance
measurement tool established by the Department of Housing and Urban Development.
The Unit will continue to utilize technical assistance from the Supportive Housing Collaborative
and from the HUD Project Officer to strengthen administration of North Carolinas HOPWA
program.
Status: In addition to technical assistance from the HUD Project Officer, we also received
technical assistance from AIDS Housing of Washington and Collaborative Solutions.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 30
Submitted to US HUD on March 28, 2007
Interagency Coordination and Collaboration
Division of Community Assistance
The Division will continue to work with other governmental and non- governmental groups such
as the North Carolina Department of Labor, the North Carolina Housing Finance Agency, and the
North Carolina IDA and Asset Building Collaborative to support and fund IDA and other savings
programs in the state.
Status: The Division continued strengthening interagency ties with various IDA programs. DCA
staff served on a committee of state agencies and non- profits to create a best practices manual for
IDA providers; and a staff member serves on the North Carolina IDA and Asset Building
Collaborative Advisory Board.
The Division will continue to engage other state agencies and federal allies in funding priority
projects in 21st Century Communities. The counties of Burke, Hyde, Montgomery, and Sampson
were selected in 2005 to be the third round of 21 st Century Communities, and will continue to
receive assistance in 2006.
Status: The Division continues to urge other state agencies and federal allies to fund priority
projects located in 21 st Century Communities. Burke, Hyde, Montgomery, and Sampson counties
were selected for the third round for the period 2005- 2007.
If needed, the Division is prepared to react to severe economic crises such as plant closures and
mass layoffs by coordinating economic recovery plans and implementing recovery activities.
Status: The Division is prepared to provide local communities with economic recovery plans in
the event of large plant closings and massive layoffs.
The Division will initiate a round table discussion in late 2006 to determine the best use of CDGB
funds for economic development in 2007.
Status: DCA conducted three roundtable sessions – one each in September, October, and
November 2006 – where community and economic development leaders provided input for
design of the new 2007 Small Business and Entrepreneurial Assistance Grant Program.
The Division will continue to serve on statewide housing policy boards such as the Housing
Coordination and Policy Council.
Status: The Division continues to serve on various housing boards.
The Division will continue to collaborate with state and local agencies such as the North Carolina
Redevelopment Center and local emergency management and housing agencies on disaster relief
projects as they arise.
Status: The Division continues to serve on various housing boards.
North Carolina Housing Finance Agency
The Agency will partner with Advanced Energy Corporation ( AEC) of Raleigh, North Carolina,
to train and assist local partners under two home ownership programs. AEC’s services will
include providing low- income homebuyers with two- year guarantees that their heating and
cooling costs with not exceed a very low, set level ( as low as $ 18/ month). This broadens the
windows of affordability and enhances marketing effectiveness.
Status: The Agency continued to partner with AEC to train and assist local partners.
The Agency will continue as a member of the Interagency Coordinating Council for Homeless
Programs ( ICCHP).
Status: The Agency continued to participate as a member, and it also continued its role in
collaboratively planning the ICCHP Annual Homeless Conference.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 31
Submitted to US HUD on March 28, 2007
The State will continue its collaborative relationship with the Department of Labor by providing
matching funds and second mortgages for participants in the Department of Labor’s IDA
program. It will also broaden its support of IDA programs by developing partnerships statewide
with other IDA programs.
Status: The Agency continues to collaborate with the Department of Labor by providing matching
funds and second mortgages in the IDA program.
The Agency will continue to operate the Lead Abatement Partnership Program, responding to
actual cases of lead- poisoned low- income children in owner- occupant situations. As cases are
referred by the Department of Environment and Natural Resources ( DENR), the Agency will
locate and contract with local rehabilitation organizations to oversee lead abatement and
comprehensive housing rehabilitation.
Status: The NC Department of Energy and Natural Resources in partnership with the Agency
received a Lead- Hazard grant. This grant will provide funds for the remediation of lead hazards
in owner- occupied single- family dwelling units throughout the state.
The Agency will continue to implement the Displacement Prevention Demonstration fund which
allows the Independent Living Program and the Lead Hazard Control Branch to assist households
facing displacement due to mobility limitations and lead paint poisoning, respectively.
Status: In 2006, $ 676,000 in awards were made to assist 94 households in the Displacement
Prevention Program.
The Agency’s executive director, A. Robert Kucab, is a board member for Homes4NC, a new
foundation created by the NC Realtors Association to support affordable housing initiatives.
Status: A. Robert Kucab continued to serve on the board of Homes4NC. In 2006, the foundation
donated over $ 60,000 to agencies across the state to assist low- to moderate- income families with
their housing needs.
Office of Economic Opportunity
The Office will continue as an active member of the Housing
Coordination and Policy Council.
Status: OEO is an active member of the Housing Coordination
and Policy Council.
The Office will coordinate with the N. C. Housing Finance
Agency to continue to promote the use of Urgent Repair program funds with weatherization
services being performed through the N. C. Weatherization Assistance Program.
Status: Weatherization Assistance Program contractors combined OEO funds with Urgent Repair
Program funds when possible to increase the benefits of both programs.
The Office will actively promote the coordination of local anti- poverty efforts of community
action agencies with local, state, and national housing programs.
Status: Community action agencies were encouraged to continue identifying opportunities for
collaboration with local, state and national housing programs, i. e., HOME, CDBG, public
housing, rural development and Section 8, etc.
AIDS Care Unit
The Unit will continue as an active participant on the Housing Coordination and Policy Council
as well as the Inter- agency Council on Coordinating Homeless Programs.
Status: ACU staff continued participating on the Housing Coordination and Policy Council and
attended quarterly meetings of the Inter- agency Council on Coordinating Homeless Programs.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 32
Submitted to US HUD on March 28, 2007
The Unit will seek out opportunities to work with nonprofit organizations to provide services for
those who are triply diagnosed ( HIV/ AIDS, mental illness and substance abuse issues).
Status: ACU is in the early planning stages of implementing this objective using results from the
HOPWA needs assessment. ACU staff serves on the Department of Health and Human Services
Housing Workgroup collaborating with representatives from the mental health and substance
abuse programs.
The Unit will continue to collaborate with the other NC entitlement cities to ensure consistency
among administration of the HOPWA Program.
Status: ACU is collaborating with Wake County Human Services and the Regional HIV/ AIDS
Consortium which administers HOPWA Programs in their respective MSA’s.
Addressing Weaknesses in the Housing Delivery System
During the past five years, the participating agencies have used human, financial and programmatic
resources to increase available affordable housing stock for rent or purchase; fund community and
economic development projects that created jobs and stimulated revitalization; as well as opportunities for
business ownership; provide shelters and transitional housing; provide related services to homeless
families and individuals, persons with HIV/ AIDS and their families and other special needs populations.
Although every effort is made to improve the collective quality of life for the state’s most vulnerable
populations, budget constraints sometimes limit the scope and extent of existing programs and hinder
development and implementation of new ones. Each of the participating agencies has highlighted their
individual efforts to address weaknesses in the housing delivery system.
Division of Community Assistance
Among its strengths, the Division credits its highly motivated professional staff. Additionally, it
mentions the redesigned and new programs, which offer more local communities opportunities to
participate. The Division currently operates a Capacity Building program that tries to increase
nonprofit participation in the CDBG Program/ Process. The Division also considers its
sponsorship of Housing Development training for nonprofits as a strength because it helps to
increase their ability to develop better housing projects. Nevertheless, the current state budget
conditions limit state support for the agency’s administrative budget; this presents a weakness in
the Division’s ability to provide housing services. The Division continues to see training and
professional development for staff as an opportunity to improve the delivery of services in 2006.
Status: Several DCA staff have completed the state’s Certified Public Manager, CPM, program.
“ The purpose of the PMP is to provide an in- depth, comprehensive training program for middle
managers from state government agencies and university campuses. A graduate of the PMP is
designated a Certified Public Manager…” ( Excerpted from www. osp. state. nc. us/ trancata/ pmp. htm
< http:// www. osp. state. nc. us/ trancata/ pmp. htm>). Two DCA staff persons are currently enrolled in the
program.
DCA, in conjunction with the Institute of Government, University of North Carolina, Chapel Hill,
sponsored the fourth annual Community Development Academy on February 15- 17 and March
15- 17, 2006. 34 participants completed the program including sixteen from local government: 9
from the Small Cities program and 7 from entitlement jurisdictions; ten from the nonprofit sector
and 4 from consulting firms.
The academy is an intensive five day overview of the concept and application of community
development practices and the community development block grant program. The academy
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 33
Submitted to US HUD on March 28, 2007
offers hands on experience in and exposure to tools, policies and programs designed to strengthen
communities.
DCA also participated in a training session sponsored by the Council of State Community
Development Agencies, COSCDA.
North Carolina Housing Finance Agency
The Agency has private activity volume cap sufficient to meet its 2006 homeownership goals. It
offers a variety of loan products ( conventional, FHA, USDA, and VA) and has 90 and 150 day
interest rate guarantees. The Agency is currently serving only approximately 70% of the state’s
counties with its mortgage products, but intends to expand coverage by expanding third party
originations, continuing to offer lender incentives to increase loan production in unserved areas of
the state and offering a leveraged program in conjunction with USDA Rural Development. The
Agency will also increase income and sales price limits and down payment assistance.
Status: The Rural Opportunity Mortgage Program helped the HFA provide first- time home
mortgages in approximately eighty- seven percent ( 87%), of North Carolina’s 100 counties.
Income and sales price limits were approved by the HFA Board of Directors in 2006.
The Agency will continue to provide application workshops and housing development
workshops for organizations interested in developing supportive housing for
individuals with special needs.
Status: The Supportive Housing Development Program offered five regional
application and housing development workshops for organizations interested
in developing supportive housing for individuals with special needs in
addition to making presentations at five state and local conferences sponsored
by other housing related organizations. Staff also made over thirty
consultation/ technical assistance site visits with potential applicants and
partners, and participated in five community forums to gather consumer
input for the design of the Agency’s new Housing 400 Initiative and market the
initiative to potential developers of supportive housing.
.
One of the current weaknesses in the housing delivery system is an overtaxed housing counseling
delivery system. Another is the lack of financial assistance for households who unexpectedly
find themselves at risk of foreclosure. At the request of the General Assembly, the Agency is
administering the Home Protection Pilot Program. This program will provide loans to assist
homeowners in target regions who are at risk of foreclosure, and will strengthen the housing
counseling delivery system in those areas.
Status: The Agency continued to provide technical assistance and conduct workshops focused on
program implementation and administration to housing counseling organizations. This effort was
geared toward helping them train additions to the staff, assure growth in the knowledge of
existing staff, and implement new changes to the Program. The Agency received $ 100,000 in
2006- 2007 to assist with reverse mortgage counseling for senior citizens. The Agency also
facilitated new and follow- up introductions between current housing counseling professionals and
networks of agencies. These introductions included workforce development, employment
security, education and training services. The Agency continued to provide loans through the
Home Protection Pilot Program.
Office of Economic Opportunity
The current reality facing a homeless individual or family in North Carolina is a fragmented
system of various agencies and funding streams, each with their own points of access, eligibility
and available resources. This fragmentation hampers the efforts of government and nonprofit
agencies to improve homeless access to housing and mainstream health and human services.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 34
Submitted to US HUD on March 28, 2007
Following the state’s participation in federal Homeless Policy Academies in 2003 and 2004, the
NC Interagency Council for Coordinating Homeless Programs ( ICCHP) formulated a state plan to
end homelessness. This state- level action plan to end homelessness is seen as one way to ensure
that homeless people have a more efficient and coordinated system to assist and support them in
their efforts to transition from homelessness to stability.
Status: The ICCHP has used funds granted by the Office of Economic Opportunity to provide
technical assistance to communities across the state expressing an interest in developing a local
ten year plan to end homelessness. As of October 2006, mayors and/ or county executives from
twelve North Carolina communities have made commitments to developing local plans. These
communities include Asheville/ Buncombe, Chapel Hill/ Hillsborough/ Carrboro/ Orange,
Charlotte, Mecklenburg, Durham City/ Durham County, Fayetteville/ Cumberland,
Greensboro/ High Point/ Guilford, Raleigh/ Wake, Winston- Salem/ Forsyth, Gastonia, Henderson,
Shelby and Wilmington. ICCHP representatives provided these communities with technical
assistance in the development of their plans in 2006 and continue to work with communities that
have not yet made official planning commitments.
Nonprofit agencies and local governments providing shelter and services to homeless people in
the state have found it increasingly difficult to secure the funding needed to produce affordable
housing for extremely low- income citizens; maintain existing homeless shelters; and to improve
or, in some cases, establish homeless access to needed services. In the last two years, nonprofit
organizations operating shelters and providing services for homeless persons have seen dramatic
drops in donations from individuals, charitable organizations and local governments. At the same
time, they have reported significant increases in the number of homeless individuals and families
seeking shelter and services. The only program administered by the State specific to homeless
persons ( and the only one funding supportive services and operating costs for homeless shelters)
is the federally- funded Emergency Shelter Grants ( ESG) Program, administered by the Office of
Economic Opportunity.
Status: The Emergency Shelter Grants Program continues to be the only program specifically
used to assist in the operation of homeless shelters. OEO continues to receive more and more
inquiries regarding the ESG Program from interested organizations and units of local government
operating facilities for the homeless. Additionally, ESG program grantees continue to report
declining revenues and increased demand for their services.
In 2006, efforts have been made to maximize mainstream benefits for homeless people, increase
the number of permanent affordable housing units available and make the best use of existing
affordable housing for homeless persons.
In FY 2006 North Carolina was chosen to participate in the Federal Policy Academy’s SSI/ SSDI
Access and Recovery ( SOAR) Initiative. In September, four representatives of the state’s
Interagency Council for Coordinating Homeless Programs ( ICCHP) are now able to train
caseworkers in communities across the state on how to facilitate timely SSI/ SSDI approvals for
homeless persons who are eligible. Caseworker training began in January of 2007.
The Key Program, a creative partnership between ICCHP member agencies, the NC Housing
Finance Agency and the Department of Health and Human Services, is one initiative that has
been successful in meeting this need. Since FY 2003- 2004 the NC Housing Finance Agency has
required Low Income Housing Tax Credit Developments to include a 10% set aside targeting
households with disabilities at the SSI income level. The NC Housing Finance Agency and the
Department of Health and Human Services’ Division of Mental Health, Developmental
Disabilities and Substance Abuse Services combined resources to create an operating assistance
fund linked to those units. Since its inception the Key Program has created 947 housing units
targeted to people with disabilities at an SSI income level.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 35
Submitted to US HUD on March 28, 2007
In FY 2006- 07, the State budget expanded this effort by creating the 400 Initiative which will use
$ 10.9 million appropriated to the NC Housing Trust Fund to ensure financing of 400 supported
housing units. Another $ 1.2 million was appropriated to the Department of Health and Human
Services in operating subsidy funds.
To help the homeless and those who are at- risk of becoming homeless, the NC Housing Finance
Agency, with support from the Department of Health and Human Services and the Department of
Correction, has taken the lead agency role in creating NCHousingSearch. com. This online
housing search tool will allow persons seeking housing to identify available and affordable
housing units. The system will be used by agency staff to identify available units with landlords
who are willing to rent to special populations, including ex- offenders, persons who are HIV
positive, victims of domestic violence, or persons in recovery from substance abuse of mental
illness. The project went live in October of 2006.
In 2004 the ICCHP began facilitating a collaborative with a membership of homeless service
communities’ compliance with HUD mandates relating to Homeless Management Information
Systems ( HMIS). The HMIS system will begin active implementation by February 2005,
increasing our state’s chances of accessing available federal dollars for housing and services for
homeless person.
Status: In FY 2005 the ICCHP provided $ 200,000 to support HMIS costs and in the same year
North Carolina drew down over $ 15,000,000 in competitive federal funding for homeless
programs. In FY 2006 the ICCHP provided $ 134,000 to support HMIS costs and in that year
North Carolina drew down over $ 13,000,000 to support funding for homeless programs. The
Balance of State HMIS project, the Carolina Homeless Information Network ( CHIN) went live in
May of 2006. More than 100 agencies across the state have been trained and are beginning to
enter data into that system.
In 2004 the ICCHP provided intensive technical assistance to 12 counties that had never applied
for Continuum of Care federal dollars targeting the homeless population. During the next year the
ICCHP will extend that assistance, with an ultimate goal of accessing roughly $ 9 million dollars
in communities that had previously not applied for those available annual funds.
Status: The ICCHP has engaged in extensive technical assistance to communities applying for
federal monies to assist them in serving their homeless populations. For two years the Council has
implemented Peer- to- Peer Technical opportunities for approximately a dozen local Continuums
of Care. The ICCHP has also provided direct technical assistance to eight rural Continuums of
Care. As a result, North Carolina has accessed an average of almost 20% more in federal FY
2005 and FY 2005 than in FY 2003. In addition, the ICCHP facilitated the first Balance of State
Continuum of Care, a 61 county collaboration that assisted rural North Carolina communities in
applying for federal funds that had previously not been sought and, as a result, had been given to
other states. In FY 2006 North Carolina drew down over $ 13,000,000 in competitive federal
funding for homeless programs.
AIDS Care Unit
The Unit considers the experience of the HOPWA project sponsors to be a strength. However,
the 7% cap on administrative costs covered by HOPWA is unworkable and too low, making it
difficult for project sponsors to function without proper reimbursement for fulfilling increased
administrative responsibilities and attending much needed training. As a way to overcome
weaknesses in its housing delivery system the Unit’s review of internal processes recommended
advocating for an increase to the 7% administrative cap in 2007, as opportunities become
available.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 36
Submitted to US HUD on March 28, 2007
Status: HUD HOPWA regulations have a seven percent ( 7%) administrative cap for all eligible
activities.
Legislative Initiatives
Division of Community Assistance
The Department of Commerce will advocate for stronger tools to attract investment, jobs and
economic vitality to urban core areas. To this end, DCA is working with the state Economic
Development Committee to define and help locate potential development hubs throughout the
state and produce new strategies that will create regional economic influence radiating from the
newly created hubs.
Status: DCA created economic incentives packages increasing the amount of private investment
and jobs in metropolitan areas.
The Division of Community Assistance will work to expand the Main Street program.
Status: The Main Street Program added four towns in 2006 – Clayton, Fuquay- Varina, Hickory
and Wake Forest, bringing the total designated since 1980 to 57. Additionally the Small Town
Main Street program added three communities – Ayden, Fairmont and Mount Giliad and their
total designated is now 10. The 2006- 2007 state budget included funds for a new position, Small
Town Main Street Coordinator for Western NC.
In light of current and possible future cuts to federal spending for the CDBG program, DCA will
educate legislators to the need for state financial support for community development initiatives
in rural parts of North Carolina.
Status: DCA staff took advantage of several opportunities, to educate legislators about the need
for state financial support for community development initiatives in rural parts of North Carolina.
North Carolina Housing Finance Agency
The Agency plans to work to pass legislation to allow the same first- time homebuyer definition
for all programs.
Status: There was not an opportunity to pursue this issue in 2006.
The Agency plans to work to increase appropriations to the Housing Trust Fund and federal
HOME Program match.
Status: Agency staff and partners continued its efforts to increase appropriations to the Housing
Trust Fund and federal HOME Program match by communicating with the General Assembly
and Governors’ Office.
One of the Agency’s legislative initiatives is to develop and administer the Home Protection Pilot
Program. This program, allocated special funding from the General Assembly, will strengthen
housing counseling in selected counties and create a loan pool to help prevent foreclosures due to
job loss.
Status: The Agency continued to implement the Home Protection Pilot Program. In partnership
with the North Carolina Justice Center and the North Carolina Housing Coalition, the Agency
provided testimony to members of the General Assembly regarding the program's effectiveness,
around the issue of foreclosures, and about the role of housing counseling. The Agency plans to
request an additional funding allocation during the upcoming session of the North Carolina
General Assembly.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 37
Submitted to US HUD on March 28, 2007
Efforts to Reduce Lead- Based Paint Hazards
Division of Community Assistance
DCA will continue to encourage local units of government to
be involved with lead- based paint removal programs.
Furthermore, DCA will encourage local governments to work
with agencies that are established primarily to mitigate lead-based
paint conditions and provide for its removal, as well as
address other environmental concerns.
Status: The division held three workshops for contractors
and rehabilitation specialists. One session focused on how to
integrate the lead based paint risk assessment into the work write- up process. Workshops on
lead- based paint issues were held at the Community Development Academy and at three scattered
site housing sessions.
North Carolina Housing Finance Agency
All HOME- funded programs will continue to be in compliance with new U. S. Department of
Housing and Urban Development lead regulations ( 25 CFR Part 35).
Status: The Agency continued to comply with the lead regulations set forth by 25 CFR Part 35.
The Agency will continue to participate in a quarterly, ad hoc lead hazards advisory group made
up of concerned individuals from the Public Health, Environmental Protection, Affordable
Housing, and Occupational Safety sectors.
Status: Agency staff members continue to attend these quarterly meetings.
The Agency will continue to operate the established Lead Abatement Partnership Program ( LAP)
using HOME funds. Under LAP, the Agency has offered assistance to low- income owner-occupants
with a lead poisoned child ( above 20 W g/ dL) for over six years. On average, about 6
cases are handled per year.
Status: The Agency continues to operate the Lead Abatement Partnership.
The Agency will continue to offer a new option under the LAP program. Using Housing Trust
Fund funding set- aside through the Urgent Repair Program under the “ Displacement Prevention
Demonstration”, the Agency will offer up to $ 5,000 per unit to LAP referrals whose situation
may be more appropriately handled through Department of Energy and Natural Resources’s
( DENR’s) Preventative Maintenance Program. Funds are provided as grants to the homeowners
to pay for cleanup and stabilization activities as prescribed by DENR’s regional lead specialists.
Status: Funds continue to be available for LAP referrals. An additional $ 675,000 was awarded
through the Displacement Prevention Program in 2006.
The Agency will continue to count households with an elevated blood lead level ( greater than
10 W g/ dL) as an eligible special needs household under the regular Urgent Repair Program ( URP).
All households that are URP beneficiaries must be special needs households. Local health
officials can refer such cases to local URP recipient organizations for assistance with Preventative
Maintenance Program activities.
Status: Households with Elevated Blood Level ( EBL) children between 10 and 20 mg/ dl are not
only eligible under URP; but specifically targeted under the Displacement Prevention Partnership.
$ 2.1 million was awarded through the URP program in 2006, and approximately $ 675,000 was
awarded through the DPP program.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 38
Submitted to US HUD on March 28, 2007
Office of Economic Opportunity
Lead safe weatherization training will be provided to subrecipient staff and subcontractors of
the N. C. Weatherization Assistance Program to ensure the proper handling of situations
involving lead hazards in dwellings receiving services.
Status: Training on lead- safe work practices continues to be provided to crew members and
contractors that perform work for the Weatherization Assistance Program.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 39
Submitted to US HUD on March 28, 2007
2006 CDBG PERFORMANCE REPORT
Note: The Division of Community Assistance is finalizing completion of data for 2006 accomplishments
received from CDBG grantees. The following is the listing of accomplishments based on to- date
information.
In 2006, much of the Community Development Block Grant program focused on two goals outlined in
the Commerce Department’s strategic plan: Building Stronger Communities and Creating Jobs through
Sustainable Economic Development. State resources were focused on stimulating development in rural
communities and some urban areas, which have not experienced positive growth. The following is an
assessment of strategic actions undertaken during the reporting period to address the state’s community
development priorities.
• The Division of Community Assistance ( DCA) and its partner the Commerce Finance Center
( CFC) continued to create jobs through sustainable economic development targeted to low- to-moderate
income residents through a variety of programs.
• DCA continued to address persistent poverty in rural communities and parts of urban areas of the
state by putting emphasis on Tier 1 and Tier 2 Communities, local governments with State
Development Zones or Urban Progress and State Agrarian Zones, and the 21 st Century
Communities Initiative.
• DCA continued high levels of funding in its core programs of Scattered Site Housing and
Concentrated Needs, both of which greatly improve the physical living conditions of our state’s
poorest residents.
• DCA continued to advance the Governor’s Growth policies by incorporating sustainable
development principles and policies into criteria for CDBG funding for Housing Development
and other categories.
CDBG Grants were awarded in the following categories in 2006: Community Revitalization ( includes
Concentrated Needs and Revitalization Strategies), Scattered Site Housing, Infrastructure, Housing
Development, Economic Development, Capacity Building, Individual Development Account, and Urgent
Needs/ Contingencies. The following is a summary of the accomplishments by local governments made in
2006 and the number of grants awarded in 2006.
Scattered Site Housing ( SSH)
The Scattered Site Housing category enables local governments to address the most critical housing needs
of very low- income families throughout a county. Funds may be used for the following housing
activities: rehabilitation, relocation, and clearance.
Accomplishments: Scattered Site Housing funds were distributed to communities in North Carolina,
providing 186 LMI households with safe, decent, sanitary housing either through rehabilitation or
relocation. In addition, 89 dilapidated homes were either cleared or improved through code enforcement
measures, removing slum and blight from those neighborhoods.
Awards: Thirty- two ( 32) Scattered Site grants were awarded in the 2006 program year. It is proposed that
285 households will either have their residential units rehabilitated or will be relocated to better housing.
Community Revitalization
The Community Revitalization category provides grants to local governments to strengthen
neighborhoods and rehabilitate homes of low- to moderate- income citizens. Awards are made on a
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 40
Submitted to US HUD on March 28, 2007
competitive basis. In 2006, Community Revitalization grants were made in two sub- categories:
Concentrated Needs and Revitalization Strategies.
The Concentrated Needs ( CN) sub- category helps local governments address specific areas with
concentrated needs ( six or more homes in a geographical area). Funds may be used for housing activities
( rehabilitation, relocation, acquisition, clearance, and disposition), water and/ or sewer installation or
replacement, construction or upgrading of streets and drainage improvements. In 2006, communities
were given greater flexibility to undertake alternative activities, such as construction of public facilities or
housing counseling.
Accomplishments: Concentrated Needs funds were distributed to communities in North Carolina,
providing approximately 134 households with safe, decent, and sanitary housing primarily through
rehabilitation or relocation. In addition, 31,660 linear feet of new water or sewer lines were placed to
connect these households to safe, clean drinking water and/ or provide access to new public sanitary sewer
lines. In addition, 84 dilapidated houses were cleared removing slum and blighting conditions from those
neighborhoods.
Awards: DCA awarded seventeen Concentrated Need grants in 2006. The selected local governments
plan to provide services to 156 households, either rehabilitating or relocating the housing stock. In
addition, the local governments plan to provide 54,278 linear feet of public water or sewer lines, and/ or
streets and drainage facilities.
The Revitalization Strategies ( RS) sub- category allows communities to address poverty in a more
comprehensive manner and over a longer period of time than the Concentrated Needs Program. Eligible
activities include any activities in the other state grant categories as well as activities eligible under HUD
federal guidelines.
Accomplishments: In 2006, the nine remaining Revitalization Strategies grantees received funds to
improve communities throughout the state. Through this program, fifteen households were provided safe,
decent, and sanitary housing through rehabilitation or relocation. In addition, 2,060 residents of these
target communities are benefiting from the construction of neighborhood facilities or services such as a
community center, employment incubator, down payment assistance or job training, and/ or some other
beneficial projects in low- to- moderate income areas. In addition, 1,595 linear feet of new sanitary sewer
line was placed to connect households to provide sanitary waste disposal to seven households
Awards: In 2006, DCA continued to fund nine of the ten communities selected to receive RS grants in
2002. The remaining nine communities received $ 350,000 each for their 5th year of funding. This year,
the selected local governments will improve the housing and suitable living conditions of 45 households
through housing activities, physical infrastructure, and/ or other public services such as job training down
payment assistance and financial literacy training, and building of community centers.
Housing Development ( HD)
The Housing Development grant category promotes new housing development for low- to- moderate
income ( LMI) persons by defraying some of the costs of renovating older buildings or building
subdivisions. Eligible uses of CDBG funds include installation of public infrastructure ( water, sewer
streets, sidewalks and drainage on a case by case basis), the removal of hazardous material, acquisition of
vacant land or vacant buildings by an eligible non- profit, and certain rehabilitation activities ( on a case by
case basis). The objective of the HD category is to support projects that create additional units of
affordable housing for LMI residents.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 41
Submitted to US HUD on March 28, 2007
Accomplishments: Housing Development funds were distributed to communities in North Carolina to
reduce the costs of new housing units for first- time homebuyer households.
Awards: There were seven ( 7) HD awards made in 2006. The awards will provide 44 single family
homes and 88 rental units.
Infrastructure ( IF)
The Infrastructure grant category enables local governments to provide new infrastructure ( public water
and/ or public sewer) to existing residential neighborhoods to correct problems that pose a severe health or
environmental risk or to improve existing infrastructure in existing residential neighborhoods. A sub-category,
Infrastructure Hook- Up, connects LMI households that would otherwise be unable to afford the
connection to existing water and/ or sewer lines ( not installed using CDBG funds).
Accomplishments: Infrastructure funds were distributed to communities in North Carolina. Projects in
this category installed 16,750 linear feet of new water and sanitary sewer lines. The Infrastructure Hook-
Up program provided hook- up for 144 LMI households.
Awards: In 2006, twelve ( 12) Infrastructure grants were made to local governments. Water and/ or sewer
lines will be installed to provide sanitary conditions to 451 existing housing units. Three ( 3)
Infrastructure Hook- Up grants were awarded to connect 144 LMI households to existing water or sewer
lines.
Economic Development ( ED)
Accomplishments: Administered by the Commerce Finance Center ( CFC), CDBG- ED grants provided
funding in 2006 to create or retain 1615 jobs, at least 974 of which were for low- to- moderate income
residents.
Awards: In 2006, the Commerce Finance Center awarded 27 Economic Development grants to local
governments who, working with private companies, will create or retain jobs for low- to- moderate income
residents in their communities.
Capacity Building ( CB)
The Capacity Building Grant Category is designed to encourage local governments to partner with an
eligible local non- profit in developing future community development projects. The local unit of
government serves as the grant applicant while the non- profit organization is the indirect recipient of
funds. Ultimately, the capacity building grant is expected to result in a future CDBG application.
Accomplishments: The Town of Mooresville, in conjunction with a local non- profit, submitted a
Housing Development application in 2006 due in large part to the increased capacity created through the
Capacity Building grant.
Awards: In 2006, DCA awarded capacity building funds to three communities.
Individual Development Account ( IDA)
The IDA Program is designed to help local governments establish an IDA program in their community by
promoting first- time home ownership. CDBG monies will match a participant’s ( enrolled in the local
IDA program) savings dollar for dollar, up to a thousand dollars to be used for either down payment
assistance or closing costs, as well as assist non- profits or local governments provide financial literacy
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 42
Submitted to US HUD on March 28, 2007
training, homebuyer education, housing counseling, and credit counseling to LMI residents seeking to
purchase their first home.
Accomplishments: There are ten ( 10) existing IDA grantees. They provided financial literacy and
homeowner education, as well as down payment assistance, to 25 households that were able to purchase a
home for the first time as a result of CDBG funds in combination with participants’ savings and local
matching funds.
Awards: Three new IDA grants were awarded in 2006 ( Davie County, Person County, and Vance
County). It is proposed that 70 LMI households will purchase their first home through these programs.
Urgent Needs ( UN)
Accomplishments: Urgent Needs funds provide households with safe, decent, sanitary housing either
through rehabilitation or relocation. In addition, the program provides access to safe drinking water
through the installation of new water lines in drought ravaged areas of the state.
Awards: There were no Urgent Needs projects funded in North Carolina in 2006.
Technical Assistance
In 2006, technical assistance priorities included: 1) increased technical assistance to local governments
and their agents that furthers the goals and priorities of the CDBG program, 2) technical assistance to
developing community development corporations, and 3) increased support for workshops, seminars, and
training for grantees and staff.
During the 2006 program year division staff presented at various workshops, conferences and other
training opportunities in order to further reach out to community development professionals and provide
technical assistance as often as necessary. In addition to one- on- one consultation with local governments,
councils of government, and consultants, DCA staff members provided technical assistance to a number
of non- profit and local government advocacy groups including the North Carolina Community
Development Association, the School of Government at the University of North Carolina at Chapel Hill,
North Carolina Community Action Agencies, the North Carolina League of Municipalities, and the North
Carolina Housing Coalition.
DCA continued its annual CDBG training academy in 2006, as part of the Community Development
Academy offered by the School of Government at the University of North Carolina at Chapel Hill. The
purpose of this academy is to train community development professionals in best practices and to make
them aware of all possible resources at their disposal as they attempt to better the living conditions and
economic opportunity of their residents. One aspect of this training is the instruction by DCA staff on
proper administration and development of CDBG grant programs. It is expected that the Community
Development Academy will continue to provide instruction and technical assistance in 2006.
DCA held CDBG workshops throughout the year that were attended by over 400 participants. These
workshops covered topics such as implementation, financial management, environmental review and
release of funds, performance measures, rehabilitation, relocation, grant writing, CDBG 101, and category
specific application workshops for each program.
The Division held three workshops for contractors and rehabilitation specialists. One session of the
workshop focused on how they should integrate the lead based paint risk assessment into the work write-up
process. Another session focused on the overall DCA grant monitoring process to help ensure that all
grantee are aware of their responsibilities for CDBG grants. In addition, the Division’s Rehabilitation
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 43
Submitted to US HUD on March 28, 2007
Specialist also met with local contractors and rehabilitation specialists on various occasions to discuss a
number of lead- based paint issues. Lead based paint issues were also discussed during the Community
Development Academy, a joint effort between DCA and the School of Government at the University of
North Carolina at Chapel Hill.
Certification of Consistency
In 2006, DCA certified 55 public housing authorities and other agencies seeking HUD funds as identified
in the SuperNOFA.
Compliance with URA/ Actions Taken to Avoid Displacement
It is not the Division’s policy to encourage displacement of individuals. Local governments that utilize
voluntary relocation activities must follow all of the requirements of the Uniform Relocation Act.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 44
Submitted to US HUD on March 28, 2007
ESG PERFORMANCE REPORT
The North Carolina Emergency Shelter Grants ( ESG) Program is designed to improve the quality of
existing emergency shelters, to help meet the costs of operating emergency shelters and transitional
housing programs, and to provide essential services to homeless individuals and families with children so
that they may improve their situations. The ESG Program is also intended to restrict the increase of
homelessness through the provision of preventive programs and activities. The program is funded by the
U. S. Department of Housing and Urban Development ( HUD) and administered by the Office of
Economic Opportunity, N. C. Department of Health and Human Services. The State’s ESG program year
coincides with the State’s fiscal year ( July 1 – June 30).
Program Application Process
In early January of 2006, pre- applications for FY 2006 ESG funding were distributed to all FY 2005 ESG
grantees, all 100 county managers and other interested agencies, organizations and persons across the
State. Program staff reviewed these pre- applications to determine the eligibility of the applicants in
February of 2006. Eligible applicants included private, nonprofit organizations as described in section
501( c) of the Internal Revenue Code of 1988 and units of local government that met the following
criteria.
• Has operated the emergency and/ or transitional shelter facility for which funding is requested for at
least one year prior to the date of pre- application;
• Operates the emergency and/ or transitional facility for which funds are requested for a minimum of
six full months out of the year;
• Operates a safe and sanitary facility which:
- if a 24 hour or Night Only facility, has an average daily occupancy ( ADO) of at least six homeless
persons per night; or
- if a Day Only facility, has an APSD ( average number of persons served daily) of at least 30
persons per day; and, provides one or more of the essential services defined by the U. S. Department
of Housing and Urban Development.
• Has an established accounting system that provides for maintenance of ESG funds in accordance with
OMB Circulars A- 110 and A- 122;
• Has a voluntary board of directors of at least five members;
• Has the ability to expend ESG funds within 365 days;
• Has acceptable resources to match the ESG funding received;
• Involves, to the maximum extent practicable, homeless persons in maintaining and operating facilities
assisted under the ESG Program and in providing services for occupants for these facilities; and,
• In the case of a private, nonprofit organization, has the written endorsement for the operation of the
homeless facility for which funding is sought of the unit of local government in which the facility is
located. This endorsement must be signed by an authorized official of the unit of local government
( mayor, county/ city/ town manager, officer of the county board of commissioners), must specifically
state the name of the applicant organizations and the name of the facility for which funding is sought
and must be on official letterhead of the authorized official signing.
Eligible applicants were notified of their approved funding level and received full application packages in
late March of 2006. A training session on the ESG Program and the completion of the application
package was held for new ESG grantees and new staff of current grantees in mid- April of 2006. Program
staff reviewed submitted applications in May of 2006. Contracts with applicants whose applications were
approved were prepared, distributed for signature and finalized by June 30, 2006. The State’s FY 2006
ESG Program year began July 1, 2006.
State of North Carolina 2006 Consolidated Annual Performance & Evaluation Report 45
Submitted to US HUD on March 28, 2007
FY 2006 Program Funding
North Carolina’s FY 2006 ESG allocation totaled $ 2,495,801. Of this amount, $ 2,371,011 was made
available for distribution to 129 nonprofit organizations and three units of local government operating 140
facilities for the homeless in 53 counties of the state. The remaining $ 124,790 was used for program
administration as allowed by program regulations.
Funding amounts for individual approved grantees were determined by several factors including:
a. The total number of eligible program applicants
b. Th